13 November, 2013
Sterling jumped against the dollar after the Bank of England Inflation Report increased the growth outlook for the UK economy. The BOE acknowledged that the UK is doing much better than it had forecast three months ago and can imagine the unemployment rate to fall to the bank’s threshold at 7 percent without having to change interest rates, by at least the fourth quarter of 2014. This fuelled speculation that after that the central bank could raise interest rates.
The pound rose on the news, and was also boosted after the UK jobs data showed the official unemployment rate fell to 7.6 percent from 7 percent and the claimant count change fell by more-than-forecast.
GBPUSD jumped to as high as $1.6003 from $1.5880 and entered the US session at $1.5968, with a 0.5 percent gain.
The euro traded more-or-less within yesterday’s range, as there were no major data released. Eurozone industrial production data disappointed, missing forecasts. EURUSD is down 0.2 percent at $1.3420. Technical indicators warn of downside risk.
Dollar/yen is flat and trading within yesterday’s range, hovering close to a two-month high of 99.80, remaining supported above yesterday’s low of 99.10.
The key driver for the dollar is expectations of tapering by the Federal Reserve. Since recent US economic data has been improving, there is growing speculation that the Fed could begin to cut stimulus as soon as its December policy meeting.
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...