30 September, 2013
Sterling is strong on Monday and hit a near 9-month high against a basket of major currencies. The pound was chosen as a safe haven today against a weaker euro and dollar as political problems in Italy and the United States increased risk aversion amongst investors.
Also helping the pound was some UK data which showed mortgage approvals for house purchases hit their highest level in more than five years last month, a latest sign of recovery in the housing market. This raised expectations that the Bank of England will raise interest rates earlier than planned.
The pound hit its highest since mid-January at 83.40 pence per euro today while against the dollar, it was up 0.15 percent at $1.6160.
The risk of a US government shutdown put the dollar under pressure, while the euro is down on the threat of fresh elections in Italy after the resignation of five ministers from former premier Silvio Berlusconi's party at the weekend.
The euro fell to $1.3478 before attempting to break above $1.3500, while it fell to a three-week low against the yen at 131.38 yen and was down 0.2 percent versus the Swiss franc at 1.2225.
The dollar was little changed in the European session after falling to a one month low versus yen as the midnight deadline approaches for a US government shutdown. Deadlock in the US Congress over raising the US debt ceiling has increased the risk that the government will run out of money from tomorrow.
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...