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Posts: 2

Topic: Daily Market News By FXNET

Asian Session - Dollar regains some losses against yen

The US dollar rebounded against the yen to recover some losses made after a huge tumble following disappointing US nonfarm payrolls data on Friday.

The data raised concern about the health of the US economy and led to speculation that a Fed rate hike may be further delayed.

The weaker jobs number caused a sell-off in the dollar and investors were forced to unwind stretched short positions on the yen. This gave the Japanese currency a bit of a breather from recent weakening.

UDJPY climbed up to 103.48 yen in the Asian session, up 0.5 percent to recover some losses after its big drop on Monday, when the pair fell over 1 percent to a one-month low.

A trade report from Japan today showed that country’s current account recorded a larger deficit in November, weighing further on Japan’s balance of payments. This will dent sentiment on the yen.
In other currencies, the euro remained steady against the dollar, close to Friday’s highs when it rallied on the back of the US jobs report. EURUSD traded at $1.3666, off a one-month low of $1.3548 hit on Thursday.

The pound remains weak after falling on Monday against the dollar. Key risk for the sterling will be UK inflation data due later today.  GBPUSD ended in Asia at $1.6387, rebounding slightly from yesterday’s low of $1.6346.

The Australian dollar, which has benefited from weakness in its US counterpart and hit a one-month high on Monday, has since retreated, down to $0.9034. AUDUSD is down 0.2percent from Monday’s high of $0.9087.

Key data to watch for in the European session will be UK CPI and Euro zone industrial production data. During the US session, US retail sales data are scheduled for release.

Kind regards, The FXNET Team

Re: Daily Market News By FXNET

Market report By Fxnet  15 Jan

Asian Session – Dollar broadly stronger after US retail sales

The dollar resumed strength after solid US retail sales data from Tuesday and managed to regain ground against the majors. Also buoying the greenback were hawkish comments from two Federal Reserve policymakers (Richard Fisher and  Charles Plosser ) who signaled they are in favour of tapering and ending the Fed’s current bond buying program.

Plosser even downplayed the weak December US jobs report released on Friday.
As a result of investors’ expectations of a rate hike now being brought forward, this helped lift the dollar higher against most of its major counterparts.

December US retail sales edged up in December with a core spending index posting a big increase, a sign the US economy gathered steam at the end of last year and was poised for stronger growth in 2014.

The dollar built on Tuesday’s recovery against the yen, with USDJPY rising to highs of 104.46 in the Asian session. Yesterday the dollar rallied more than 1% against the yen to pull away from a near one-month low of 102.85 yen.

The Australian dollar was a currency that stood out as it slid nearly 1% to $0.8910, reversing a move towards $0.9100 cents early in the week.

The euro lost gains made from a rally yesterday against the dollar that was inspired by ECB Nowotny’s upbeat comments about the Eurozone growth outlook.

The EURUSD retreated from a two-week high just shy of $1.3700 hit on Tuesday to trade at $1.3626, down 0.3% from late US session levels.
The euro stayed close to yesterday’s high when EURJPY rose to 142.61 yen, slipping slightly to 142.37.

Sterling fell back moderately in line with broad dollar strength, with GBPUSD slipping from $1.6443 to $1.6412.

Kind regards, The FXNET Team

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