11 September, 2013
Markets today were still focused on Syria as U.S. President Obama asked Congress to postpone a vote on a military strike on Syria and to seek a diplomatic resolution after a Russian proposal. Risk is back on in markets as fears ease, lifting risk currencies and leading to a drop in oil prices.
The yen dropped to its lowest level in seven weeks as safe haven demand fell on this latest news on Syria. As a result, the USDJPY rose to a seven-week high of 100.59 after opening in Asia at 100.36 yen.
There will be more caution on the dollar as focus now shifts to the Federal Reserve meeting next week. Investors await to see if the Fed will begin tapering soon. Such a decision to scale back on stimulus will be positive on the dollar.
The euro traded at $1.3252 from $1.3268, after earlier touching $1.3282, the highest since August 29. For now the EURUSD pair is driven by dollar movements.
Sterling will be in focus in the London session later today as U.K. jobs data will be released. GBPUSD spent the early part of the session hovering close to a 12-week high of $1.5743 hit yesterday, slightly to $1.5719.
Economists are predicting U.K. jobless claims will fall by 21,000 in August, following a 29,200 decline the previous month. A better than forecast number will send the pound higher, otherwise it will drop fast.
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...