24 September, 2013
The US dollar was unable so far to gain ground after its decline on Friday, especially against the Japanese yen. The US currency depreciated against most major G10 currencies on Monday but has mostly been directionless in the past two sessions.
Lack of key data releases in the Asian session and lack of a catalyst has kept the currency subdued.
Central banker comments on Monday from key Fed policy makers on their dovish outlook for the US economy did not help matters. Bothe Atlanta Fed President and New York Fed President back the Fed’s decision last week to maintain stimulus and not taper.
Adding to the dollar woes is a looming debt ceiling, meaning that the US government could shutdown in less than two weeks unless Congress reaches an agreement to raise the ceiling.
The main “risk off” theme prevailing in the markets has benefitted the safe haven Japanese yen.
USDJPY decline sharply on Monday to a low of 98.65 where it consolidated throughout the Asian session today.
Comments from ECB President Mario Draghi on Monday weighed on euro as he signalled that low interest rates will be maintained and he is willing to launch another LTRO program if necessary. (long term refinancing for banks)
EURUSD traded sideways in a very tight range just below the key psychological level of $1.3500. Focus will be on German Ifo business sentiment data later today.
GBPUSD retraced its small advance from yesterday, inching down to $1.6021.
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...
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