Most primary dealers who were polled by Reuters predicted FED would not cut its bond-buying program until March 2014 due to recent event: government shutdown caused by budget impasse, but more important, political uncertainty.
This has been the major reason why US dollar has weakened against most major currencies since government started working again. On Tuesday, job data shows that economic momentum is still weak, which has significant impact on timing of Fed tapering.
Euro, Pound and Australian dollar are the currencies which have mostly benefited from this, especially Euro surges to two-year high versus dollar and it's consolidating at 1.3800 level, analysts expect it would move above 1.4000 by the end of this year due to ECB board member comment (“not a specific worry”).
Ultimately, USD may keep falling till next year and indeed selling USD is the good choice at this time.
This has been the major reason why US dollar has weakened against most major currencies since government started working again. On Tuesday, job data shows that economic momentum is still weak, which has significant impact on timing of Fed tapering.
Euro, Pound and Australian dollar are the currencies which have mostly benefited from this, especially Euro surges to two-year high versus dollar and it's consolidating at 1.3800 level, analysts expect it would move above 1.4000 by the end of this year due to ECB board member comment (“not a specific worry”).
Ultimately, USD may keep falling till next year and indeed selling USD is the good choice at this time.
