Forex online trading: Global equity markets rose and the dollar strengthened against the yen on Monday 17th of June of 2013 on expectations the Federal Reserve will reinforce its commitment this week to supporting the U.S. economic recovery, according to Reuters report.
Stocks on Wall Street and major European indices gained 1 percent or more as investors await the end of a two-day meeting of the U.S. central bank on Wednesday 19th of June of 2013, when investors hope to get a better idea on Fed policy from Chairman Ben Bernanke.
The Fed meeting has taken on greater significance since Bernanke said in May that the U.S. central bank may decide to pare back its bond buying in its next few meetings if the economy gains momentum.
Those comments halted a stock market rally and sparked a surged in Treasuries yields while igniting a dramatic uptick in volatility as investors in Forex online trading and other markets tried to gauge the effects of a Fed reduction in its asset purchase program.
The FTSEurofirst 300 index of top European shares rose 1.2 percent to 1,190.09, while MSCI's all-country world equity index rose 1.1 percent.
According to the report, the Dow Jones industrial average was up 169.14 points, or 1.12 percent, at 15,239.32. The Standard & Poor's 500 Index was up 16.84 points, or 1.04 percent, at 1,643.57. The Nasdaq Composite Index was up 40.10 points, or 1.17 percent, at 3,463.65.
Growth in the New York state manufacturing sector picked up in June, helped lift stocks, but the details were less encouraging as new orders and employment fell to their lowest levels in five months, a report from the New York Fed showed.
In Forex online trading, the dollar rose against the yen for the first time in five trading sessions as stock markets gained worldwide, but range-trading is likely to dominate until the Fed's policy announcement on Wednesday 19th of June.
The dollar briefly extended its gains after the New York state manufacturing report topped economists' expectations. "The dollar has been selling off over the last week or so, so I think it probably has more room to gain than to lose," said John Doyle, currency strategist at Tempus Inc. in Washington, report said.
For some investors in Forex online trading, the dollar rose might be positive.