7 January, 2014
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.
Meanwhile, there was some recovery in the US dollar today following disappointing US data from late on Monday. The Institute for Supply Management said its services index dropped to 53% in December from 53.9% in November.
USDJPY opened in Asia at 104.22 after a volatile US session that brought the pair down to 103.90. The pair ended up at 104.42 with a 0.20% gain.
EURUSD opened Asia at 1.3628 and ended at 1.3617. Yesterday the euro was lifted by better - than -expected Eurozone sentiment data which contrasted with soft US ISM non-manufacturing data. A key driver today for the euro will be Eurozone CPI data.
The euro edged up against the yen, with EURJPY finishing at 142.18, rebounding from Monday’s low of 141.48 but far below a 5-year high of 145.65 set in December.
The aussie dollar fell despite news showing the Australian trade deficit was smaller- than-expected deficit in November. The Australian dollar eased down almost half a percent to 0.8919.
In other news, the US Senate confirmed Janet Yellen to be the next Chairperson of the Federal Reserve during a vote on Monday and will be replacing outgoing Ben Bernanke in February.
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...
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...