10 September, 2013
Economic news was light but market sentiment was boosted by geopolitical news today as the Syrian crisis remains in the headlines. It was announced by Interfax news agency that Syria has accepted Russia’s proposal to put its chemical weapons under international control to avoid a possible U.S. military strike, a proposal which the White House has also agreed to.
In reaction to the news, the safe haven currencies like yen and Swiss franc, as well as gold and oil prices fell. Meanwhile, economic data from China earlier in the day showed the nation is on track for a firm recovery as industrial output increase by more than expected last month.
The Australia dollar was the first to react to the news since Australia and China are major trading partners. AUDUSD bought 92.88 U.S. cents, up from Monday’s close of 92.26 U.S. cents
As geopolitical Syrian induced risk recedes, USDJPY has broken back above the key 100 yen level to a 6‐week high of 100.36 yen going into the U.S. session.
Sterling remains supported near yesterday’s high of $1.5731 after the U.K. RICS house price balance rose to 40 percent, which is the highest level in six years. Any strong economic data raises the chance that the Bank of England will lift interest rates soon.
Euro eased slightly from yesterday’s highs of $1.3280, entering the New York session at $1.3230. News flow was light and there were no key data releases. France did release disappointing industrial production numbers and Italy’s final Q2 GDP was revised down.
The Asian session was calm as the economic calendar was light and most investors were positioning ahead of key risk events later this week, primarily the US nonfarm payrolls report on Friday...
The first full trading week of 2014 began today, with Japan opening for the first time after a two-week holiday...
The pair extended the positive trading, whereas it approached 61.8% correction at 1.3625
The dollar rose above 102.00 yen for the first time since May 29, while the euro flirted with the key $1.36 handle and hit a new four-year high within striking distance of 139.00 yen...
The best performing currency during Thursday’s Asian session was the Australian dollar which jumped against its US counterpart after strong Australian business spending data. Private Capital Expenditure increased by 3.6% quarter-on-quarter despite expectations for a decline by 1.1%...
The main currency of the day was the sterling which outperformed against the dollar and euro, as well as against the yen after being boosted by strong UK second quarter growth data...
The euro was stronger today particularly against the dollar and the pound. While there were no economic data releases today from the Eurozone to explain the move, there were some headline news which affected sterling and dollar...
The yen was supported by safe haven demand today after the release of a slightly dovish Bank of Japan policy meeting minutes. The minute from last weeks meeting showed some concern about Japans economic outlook and whether the central bank 2% inflation target could be met...
The dollar remains bullish against the yen, while the euro hit a new four-year high against the Japanese currency in todays Asian session...