26, June 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The U.S. dollar strengthened against some major currencies on Monday, focusing on the dynamics of the U.S. Treasury bonds yield and the stock market.

The dollar index ICE that tracks the dollar to a basket of six major currencies, grew to 82.582 against 82.302 at the close of North American session on Friday.

The dollar index WSJ, which tracks the dollar's value to a bit of a broader basket of currencies, grew to 74.34 against 74.29.

This dollar strengthening is the next phase of growth which began after the Fed Chairman's statements who said on Wednesday that the United States may slow the pace of monetary stimulus this year if the state of the economy continues to improve.

However, the recent grow of the dollar has weakened. Fed President Narayana Kocherlakota on Monday said that there is a misconception that the Fed has taken a tougher stance on monetary policy.

Earlier Monday, the president of the Federal Reserve Bank of New York William Dudley said that the central bank did not sufficiently mitigate the policy.

His comments, including those in which he talked about the Fed's mandate to smooth market volatility, coincided with the initial decline of the dollar against the yen, as well as the stabilization of the U.S. bond market, said Brad Bechtel, managing director at Faros Trading.