26 September, 2013
The yen paused its advance against the dollar and the euro today after some aggressive selling by traders who are being cautious ahead of more possible stimulus measures to be unveiled by Japanese Prime Minister Shinzo Abe next week.
Abe is scheduled to announce more monetary easing measures on October 1st, and there is speculation that included in this package will be a corporate tax cut.
It has been evident that since the launch of bold monetary easing measures to stimulate the stagnant Japanese economy since Abe came into power end of 2012, the yen has been weakening and is expected to weaken further in the longer term.
Recently we have seen a pause in this weakness due to the US dollar having its own issues and weakened as a result of concerns of the US budget impasse.
The dollar remains weak against other peers apart from the yen.
USDJPY peaked at 99.12 yen after bouncing off a one-week low of 98.27 yen . EURJPY rose to 133.91 yen.
The dollar held onto losses against euro as EURUSD consolidated after rising to a high of $1.3536 in the late US session on Wednesday.
GBPUSD hit a high of $1.6087 yesterday and consolidated into a tight range. The pound will be in focus later today since the UK will be releasing Final GDP data.
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...