14 October, 2013
Weekend talks in Washington over the US debt ceiling ended without any progress in the gridlock, raising concern for investors who are nervous as the October 17 deadline comes closer.
If the borrowing limit is not raised by this date, the US government will soon be unable to pay its debts and will run out of money, probably causing a domino effect to the rest of global markets.
Investors will closely monitor these debt negotiations and hope a last-minute compromise will be reached.
The US markets will be closed today for the Columbus Day public holiday, so trading in the dollar will likely be subdued.
The lack of news on the debt talks caused a boost to the safe haven yen. Also adding to damp market sentiment was disappointing China data which showed export growth unexpectedly slowed in September. China is the world’s second largest economy, so any weak data has an impact on markets.
The safe haven yen gained for the first time in four days against the dollar, with USDJPY gapping lower and trading down 0.3 percent to 98.25 yen.
Against the euro, the yen rose 0.2 percent to 133.27 per euro.
The dollar weakened against the euro, down 0.2 percent to $1.3565 per euro.
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...