Yen weak on Japan FinMin remarks, dollar in focus ahead of Yellen speech

14 November, 2013

The yen weakened during the Asian session against most major counterparts as markets reacted to comments made by Japanese Finance Minister Taro Aso today.

Relatively good economic data from Japan did not help the yen rise. A GDP report showed the Japanese economy expanded at an annualized pace of 1.9% in the third quarter, surpassing expectations for a 1.7% growth. However, compared to the first and second quarters, growth was slower.

Market participants were more concerned about Taro Aso’s remarks which hinted that more policy easing was possible, which tends to have a weakening effect on the yen

USDJPY rebounded from its decline in the US session, and rose in Asia to a high of 99.71 and ended the session with a 0.43% gain at 99.65.

Meanwhile the dollar which had weakened against the euro and pound in the US session was able to make up for losses. The dollar had fallen late in the US session yesterday in reaction to the dovish tone of the written testimony of Janet Yellen, the new Fed Chief as from January 1st.

Yellen will be speaking to the US Senate Banking Committee later today. She is expected to remain dovish after her written text released yesterday showed that she still thinks the US economy is weak and the Fed’s assistance is still required to boost growth. She added that unemployment remains high and that inflation is expected to remain below the Fed’s 2 % goal.

The sell-off in the US dollar after Yellen’s test last night helped lift the euro late in the US session, which hit a high of 1.3496 just before the Asian session began. It eased lower in Asia to end 0.14% down at 1.3462. The pound fell 0.11% in Asia to 1.6039.

Source link  
Aussie declines despite shrinking Australian trade deficit

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...

USD/JPY slips as Nikkei falls in risk-off market after disappointing China PMI data

The first full trading week of 2014 began today, with Japan opening for the first time after a two-week holiday...

Technical Analysis On Major Currencies By FXNET

The pair extended the positive trading, whereas it approached 61.8% correction at 1.3625

Euro Hits Fresh 1-Month High After German Inflation Data

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...

Aussie Powers Through & Dollar Hits New 6-Month High Against 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%...

Sterling and Euro Outperform Vs US Dollar

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...

Euro Steady Around $1.35

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...

Yen Up Against Dollar After Weak US Data

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...

EUR/JPY Hits A New 4-Year High

The dollar remains bullish against the yen, while the euro hit a new four-year high against the Japanese currency in todays Asian session...


Share it on:   or