21 November, 2013
The yen dropped to its weakest level in four months versus the broadly stronger US dollar in today’s Asian session.
USDJPY hit a session high of 100.80 yen and ended the session with a 0.6% gain at 100.70 yen.
The diverging monetary policies between the Bank of Japan and the Fed are causing a wider gap between US bond yields and Japanese JGB yields and hence a higher dollar versus yen.
The Bank of Japan left its monetary policy unchanged during its meeting today while the Fed last night signaled it could scale back stimulus as soon as the next meeting.
The euro is under pressure due to market rumors of the ECB is considering negative deposit rates. The broadly stronger dollar is also putting pressure on the euro.
EURUSD fell to a low of 1.3412 in the Asian session, and ended with a 0.06% loss at 1.3428. GBPUSD ended the session down 0.08% at 1.6089.
The Australian dollar took a beating after disappointing data from China, which is Australia’s largest trading partner. AUDUSD closed the Asian session with a 0.2% loss at 0.9304.
The Chinese HSBC manufacturing flash PMI index of business confidence for November dipped to 50.4 compared to 50.9 the previous month.
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...
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The pair extended the positive trading, whereas it approached 61.8% correction at 1.3625
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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...
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The dollar remains bullish against the yen, while the euro hit a new four-year high against the Japanese currency in todays Asian session...