Another canada goose round of QE would be negative for the

yen as Fed outlook brightens

Dollar seen supported against yen

By Julie Haviv

NEW YORK, March 13 (Reuters) The dollar hit an 11 month high against the canada goose clearance yen and canada goose factory sale a one month peak versus the euro canada goose coats on sale on Tuesday as a modest brightening of the Federal Reserve economic outlook had investors downplaying expectations of future stimulus measures.

The Fed provided few clues on the prospects for further monetary easing, but offered jacketstock a slight upgrade to its economic outlook, backed up by a report released earlier in the day that showed retail sales posting their largest gain in five months in February. job growth has led some analysts to rein in their expectations of a third round of asset purchases by the Fed, called Canada Goose Coats On Sale quantitative easing. Another canada goose round of QE would be negative for the dollar buy canada goose jacket cheap as it is canada goose store tantamount to printing money and dilutes its value.

might want to hang their Canada Goose Online hats on the uk canada goose outlet Fed mention of inflation as a reason to think the probability of QE3 is lower, said Mark McCormick, currency strategist at Brown canadian goose jacket Brothers Harriman in New York. I downplay uk canada goose that canada goose uk shop because they stating that inflation will be temporary.

said, I canada goose black friday sale think the euro goes lower and the dollar gets some support, he added.

The euro was last down 0.6 percent at $1.3072 after falling as low as $1.3050, its lowest level since Feb. canada goose clearance sale 16.

still uncertainty hanging over the euro, and while the Fed still in easing mode, other major central banks are a bit more dovish than the Fed, McCormick said.

The Fed stance contrasts with the more accommodative policies of the European Central Bank and Bank of Japan, both of which unleashed measures over the past month that aimed to boost economic growth and assuage bank funding issues. retail sales data followed a report on Friday showing that February was the third canada goose uk black friday straight month to record a gain of more than 200,000 jobs.

Fed officials remain uncertain whether the progress reducing unemployment can be maintained given still sluggish economic growth, and many economists believe the central bank will canada goose uk outlet launch another round Canada Goose Jackets of bond buying later in the year.

The euro, which continues to flirt canada goose coats with its 50 day moving average, is trying to recover from a break downward at the end of last week and needs to resurface Canada Goose sale above the $1.3210 area to reduce the negative bias toward the currency, a trader said.

The dollar outperformance is also a reflection of diverging economies, with a brightening picture in the United States contrasting with the euro zone where some countries are either in recession or slipping back into one.

BANK OF JAPAN WAITS The dollar recouped losses against the yen that occurred after the Bank of Japan stopped short of taking aggressive easing steps on Tuesday. Some investors had been betting on a repeat of the central bank surprise easing last month.

Against the yen, the dollar was last up 0.8 percent at 82.98 after touching an 11 month peak of Canada Goose Parka 83.08 yen, its highest since April 20, 2011.

were positioning for more aggressive easing from the BOJ and so far those expectations have been disappointed, said Lee Hardman, currency strategist at BTM UFJ in London. expect the dollar to canada goose outlet outperform generally but against the yen it looks to have come too cheap Canada Goose far in the short term.

Volatility curves still have a positive gradient, writes Simon Smollett, senior FX options strategist at Credit Agricole, until back month prices start slipping lower on their own, we still buy canada goose jacket have not exited this long Canada Goose online period of risk aversion. dollar versus Asian Canada Goose Outlet currency pairs, which emphasizes that sharp cheap canada goose uk spot moves are off the agenda.