15 October, 2013
The market consensus is bullish that a deal will be reached in Washington that would avert a US default on its financial obligations. Also there is optimism this deal would end the government shutdown, at least temporarily, allowing the government to resume operations after being closed for two weeks.
The US dollar was bought back as fears eased over the US debt ceiling. Last week investors were worried that a default could lead to severe damage to the global economy.
The dollar gained 0.5 percent to hit a one-month high against a basket of six major currencies.
Against the safety of the Swiss franc, the greenback reached a one-month high of 0.91455 francs. Against the yen, dollar has been in range after hitting a two-week high twice today at 98.68 yen.
The euro was not helped by strong German Economic Sentiment which rose to its best level in over three years. Euro fell to $1.3478 after an 80 pip tumble.
Sterling rose early in the session after British inflation data came in slightly higher than expected according to a report from Office for National Statistics. Annual consumer price inflation was 2.7 percent in September, unchanged from August, confounding economists' forecasts for a slight dip to 2.6 percent.
However soon after the data the pound fell against down 0.2 percent $1.5955,after having hit as high as $1.6010 after the 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...