6 January, 2014
The first full trading week of 2014 began today, with Japan opening for the first time after a two-week holiday.
The Nikkei traded down in a risk-off environment as yen was lifted by safe-haven demand. Disappointing China services PMI data weighed on investor sentiment.
The world’s second largest economy showed signs of sluggishness after the HSBC/ Markit PMI for the service sector recorded the weakest level in over two years.
While still in the expansionary zone (above 50 points), the services PMI slipped to 50.9 in December, the weakest since August 2011, compared to a previous 52.5.
As a result, the USDJPY pair was heavy, plunging from a high of 104.95 to lows of 104.15 yen, losing half a percent in the Asian session. The main driver for the dollar this week will be Friday’s US jobs data (nonfarm payrolls).
The euro was also affected, with EURJPY being sold off to 142.65 from 141.50 yen.
Meanwhile, the EURUSD was pinned down against the US dollar, although little changed in the session, edging slightly lower to $1.3570. Key data for the euro later today will be services PMI data from the Euro zone.
Aussie was weak on the back of the soft China PMI data, since China is a major export destination for Australia. AUDUSD traded between $0.8942 and $0.8982.
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 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...
The US dollar is broadly stronger against its major G10 counterparts on Monday while the yen remains weak as a result of a sell-off due to outflows from safe havens like itself...