15 November, 2013
The yen weakened further during the Asian session and is on course to end the week with losses as demand for safe haven assets fell. Market sentiment is high and risk appetite has been propped up due to continued economic stimulus measures from major central banks, especially from the Federal Reserve in the US.
Janet Yellen, who is a nominee for the post of Fed Chief, said at her testimony in front of the US Senate Committee on Thursday that she supports the Fed’s current stimulus measures and believes the US economy still requires the Fed’s assistance, primarily due to the elevated level of unemployment.
The Fed’s accommodative policy and stimulus measures which include $85 billion a month in bond purchases, have a weakening effect on the dollar. The greenback weakened after Yellen’s comments, especially against the euro and sterling.
During the Asian session, EURUSD and GBPUSD mainly consolidated gains made in the prior US session. The euro ended the session with a slight gain of 0.03 percent to trade at $1.3462. Sterling held above the key $1.60 handle and hit a session high of $1.6084.
The yen underperformed due to comments from Japanese Finance Minister Taro Aso who said that currency market intervention was a policy tool that could be used to weaken the yen, as part of the government’s effort to fight deflation and stimulate the economy.
USDJPY broke above the key 100 yen level for the first time in two months yesterday, and hit as high as 100.30 yen in Asia today.
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...