Forex currency trading online is always active and there is always an opportunity of making profit, according to Reuters.com speculation the Fed could start slowing its bond purchases as early as the summer had fueled a strong rally in the dollar and pushed futures positioning to extended levels, leaving the currency vulnerable to a reversal, traders said.
The U.S. economy grew at a slightly slower pace in the first quarter than initially estimated, according to data released on 30th of May 2013. Separate reports showed initial jobless claims unexpectedly rose last week and pending home sales rose less than expected, report said.
Analysts said the weaker data could reinforce expectations that the economy still needs a lot of monetary stimulus. Fed Chairman Ben Bernanke said this month that the U.S. central bank could "in the next few meetings take a step down" but only if economic improvement continued, which means that if the id the economy does not improve it is going to be hard to reach expectations.
In Forex currency trading online, the euro rose 0.8 percent to $1.3040, having reached a session peak of $1.3061, according to Reuter’s data, the strongest since May 9.
Against the yen, the dollar slipped 0.1 percent to 101.06 yen, retreating from a session peak of 101.80 yen.
The yen had come under pressure after sources familiar with the deliberations told Reuters that Japan's Government Pension Investment Fund (GPIF) was considering a more flexible approach to allocations which could let investment in domestic stocks grow in rallying markets.
Traders said the news pushed Nikkei equity futures higher and caused yen selling. In recent months, Japan's stock market and the yen have showed a negative correlation. In Forex currency trading online, the yen is seen as a safe haven and tends to benefit in times of market stress that is way the currency increased its value against dollar.
According to the report most market participants expect the dollar to continue to gain against the yen over the medium term on expectations of further easing by the Bank of Japan.
The euro rose 0.7 percent to 131.76 yen.
Adding to strength in the euro was data showing confidence in the euro zone economy grew more than expected in May.
Against a basket of currencies, the dollar index .DXY lost 0.7 percent to 83.063, having fallen to a two-week low of 82.989 in Forex currency trading online.