17 September, 2013
The dollar selling frenzy that happened on Monday in reaction to the announcement of Larry Summers withdrawing his candidacy to be the next Fed chairman has eased and we have seen a reversal since the US session. Further gains in the dollar were made in Tuesday’s Asian session.
Market focus is now on the Federal Reserve policy meeting. The two-day meeting begins today and will conclude on Wednesday with hopefully some decision on when and by how much the Fed will being tapering.
Expectations are for about $10 billion in cuts to the current bond buying program. The rally in the euro was short lived as the sell off in USD faded. EURUSD soon switched to a downside bias. In Asia the pair reached as low as $1.3324. Any upside move will likely be limited as we approach the FOMC meeting tomorrow.
GBPUSD was a little quieter in the session, trading sideways with strong support at $1.5887.
USDJPY opened in Asia at 99.05 and moved higher throughout the session to reach a high of 99.35 yen.
AUDUSD slipped lower ahead of the RBA minutes release to finally fall to $0.9284 after the release.
In the upcoming European session the ZEW Indicator of Economic Sentiment for Germany will be closely watched.
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...