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.Publication source