18 November, 2013
Market sentiment remains positive as it is still being characterized by the loose monetary policies of the world’s major central banks – Federal Reserve, European Central Bank and Bank of Japan.
Last week, the Fed President nominee Janet Yellen signaled she will continue the Fed’s stimulus program, which helped keep risk appetite supported.
Most major currency pairs traded in familiar ranges, with the riskier currencies holding on to gains from the risk rally produced at the end of last week.
Sterling carved a new two-week high in Asia today, with GBPUSD hitting a session high of $1.6141, while the euro breached a key level of $1.3500, peaking at $1.3506 before steadying at $1.3490.
The dollar/yen pair is the main currency in focus after it broke above the key psychological level of 100 yen last week. USDJPY eased back down today but found support at this level, after opening in Asian at 100.25 yen.
The yen is expected to weaken further based on the Bank of Japan’s monetary easing policies. There are a couple of key releases from Japan this week, including trade balance and the BoJ meeting, both of which will be key drivers for the Japanese currency.
Aussie was the biggest mover in Asia this morning, with AUDUSD rising to a high of $0.9412, gaining 0.4% percent.
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...