7 November, 2013
After being stuck in a trading range for the past couple of days, the euro finally broke out to the downside and fell hard against the dollar after the ECB rate announcement.
Markets were caught by surprise after the ECB lowered its main interest by a quarter percentage point to a record low 0.25 percent from 0.5 percent. Soft inflation in the Eurozone was the main culprit.
The euro slid by over 130 pips immediately after the news and then continued lower as the US session came around. Also ECB President Mario Draghi began to speak at a press conference and was already sounding dovish.
EURUSD ended the European session with a 1.13 percent loss, ending at $1.3370. EURJPY fell 1 percent to 132.03.
The Bank of England announced its monetary policy just before the ECB and left its benchmark rate unchanged at 0.50% and its asset purchase program 375 billion pounds.
GBPUSD slid to a session low of $1.6017 before ending at $1.6042, losing 0.2 percent.
The dollar rose against the yen, to end the European session at 98.74. US GDP data as well as US jobless claims were released as the US session came around and strong GDP data boosted USDJPY to above the key 99.00 level, towards 99.35.
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...