26 September, 2013
The European session on Thursday was lively as focus temporarily shifted away from US politics and the US dollar and Euro and Sterling took the spotlight.
The pound fell from a one-week high against the dollar after data showed soft UK GDP and a wider than expected current-account deficit. This raises concern that the country’s road to recovery continues to rough.
GBPUSD dropped to $1.6035 from $1.6094.
The euro fell after reacting to news on Italian politics. Ex-Prime Minister Berlusconi's supporters threaten to resign as the Italian Senate considers his expulsion, making the coalition government fragile.
EURUSD tumbled to a session low of $ 1.3482, down from an earlier session high of $1.3525.
The yen weakened for the first time in five days against the dollar today on speculation that Japan will cut corporate taxes. This made shares rally since the tax cut will make companies more profitable. When Japanese equity markets rise, yen tends to fall since they have an inverse correlation.
Whenever it’s seen as a “risk-on”, then the safe have yen is sold off.
USDJPY was propelled to a high of 99.10 in Asia and went into early US session just above 98.75.
Focus is now on US economic data in the upcoming New York session. Second quarter US GDP is due. Other economic data out is Pending home sales figures for August, a reading of manufacturing activity in the Midwestern US and initial jobless claims numbers from the US labor department.
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...