15 November, 2013
The European session was relatively quiet as would be normal for a Friday, with most currency pairs consolidating the past couple of days’ moves. There was a lot of volatility yesterday as a result of news flow and economic data.
Markets are digesting the news surrounding Janet Yellen’s testimony yesterday in front of the US Senate Committee. Yellen has been nominated for the Fed Chair position to replace outgoing Chairman Ben Bernanke. Yellen has expressed her dovish views on the US economy and announced her determination to continue with the Fed’s unprecedented monetary stimulus until she sees a robust recovery.
Yellen’s announcement dominated markets today and did not allow the dollar to gain strength against the euro or sterling. The Fed’s bond buying program is a damper on the dollar.
The euro chopped around in a range against the dollar throughout the European session, trading around $1.345 - $1.346. Eurozone inflation numbers were in line with expectations and had little impact on the euro.
Sterling was steady against the dollar after a busy week that was full of UK data releases. Mixed data kept cable in a range – this week there was lower CPI but better employment numbers. The Bank of England quarterly inflation report was very upbeat but yesterday there was worse than expected retail sales. GBPUSD stayed above the key $1.60 handle, hovering $1.6065.
Yen continues to be the biggest loser since expectations of continued monetary easing in Japan is weakening the currency. USDJPY extended gains to 100.42, a new two-month high, where it found tough resistance and fell back on profit-taking. EURJPY edged up to 135.06 and consolidated in a tight range just around the 1.35 handle.
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...