12 November, 2013
Sterling tumbled to a two-month low against the US dollar today on the back of UK inflation unexpectedly falling to its lowest rate for more than a year in October. The softening inflation rate will likely reassure the Bank of England that the British economy is strengthening and thus lessens the chance of a rate hike soon. This led to a sell-off in the pound today.
The UK consumer price index (CPI) number was well below economists' average forecasts of a drop to 2.5 percent and is the lowest rate since September 2012. It was driven by declines in petrol prices and other transport costs.
GBPUSD slid to a session low of $1.5853, the lowest since September 13, down from the European session open of $1.5960.
Euro was under pressure, falling to a low of $1.3358 after disappointing German inflation data. The Final CPI reading fell 0.2 percent in October, the lowest rate in six months. Since Germany is Europe’s largest economy, the data affected the euro.
The dollar continued to rise against the yen, as it is being buoyed by strong US employment data from Friday. Any strong data will strengthen the case for the Federal Reserve to being scaling back stimulus sooner than the predicted March 2014 date.
USDJPY climbed to a high of 99.78 yen, the highest since September 13.
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...