21 November, 2013
USDJPY was driven to a new four-month high of 100.92 yen by mid-European session trading, its highest since July 10. EURJPY also rose, peaking at 135.87 yen, just below a four-year high hit yesterday.
The dollar was boosted by Wednesday’s Fed minutes which were upbeat on the US economy and suggested that trimming the pace of bond buying was possible in the coming months. There are some expectations for tapering as soon as the December meeting.
An already bullish dollar/yen was lifted higher today as a result of a broadly weaker yen, which fell after the Bank of Japan minutes today, in which the BOJ reiterated the view that it will continue with policy easing.
The euro was supported by comments from ECB Chief Mario Draghi today who eased fears of an imminent negative deposit rate cut. This helped the euro bounce from lows of1.3398 reached early in the European session when it was pressured by weak Eurozone PMI data. EURUSD rose to a high of 1.3476 by the end of the session.
Sterling jumped higher on strong UK factory data. The Confederation of British Industry’s monthly industrial trends index shows a rise to the highest level in 18 years. GBPUSD rose to a high of 1.6140 while GBPJPY hit a new four-year high of 162.73.
In the upcoming US session focus will turn to US jobless claims data and the Philly Fed manufacturing index.
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...