USD/JPY gradually pushed higher on Tuesday in response to more favourable risk conditions and fresh concerns surrounding Japan with a challenge on resistance above 103.20. The latest Tankan index was weaker than expected with a marginal increase to 17 for the first quarter from 16 while non-manufacturing confidence was unchanged. There were further concerns that the sales tax increase would damage the economy, especially with a sharp decline in the expectations component which will increase pressure on the Bank of Japan for further monetary action. Read the rest of this entry »
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Risk conditions were generally firmer during Monday with immediate political and economic concerns easing to some extent. Although talks between Russia and the US over Ukraine failed to reach any substantive agreement, there was relief that dialogue was continuing with a slightly more conciliatory tone. On economic grounds, there was further speculation over a Chinese stimulus which helped offset debt fears. USD/JPY built on Friday’s gains with a peak just above 103.40. Read the rest of this entry »
There was a generally lacklustre Tokyo session on Friday. A slightly higher reading for Japanese consumer inflation was recorded and the unemployment data was better than expected at 3.6%. In contrast, there was a much weaker than expected release for household spending which will increase unease surrounding consumer demand trends with the sales tax increase coming into force next week. USD/JPY was able to find further support on approach to the 102 level with EUR/JPY support close to 140.0. Read the rest of this entry »
Commodity currencies had a firmer tone during Tuesday and maintained this advantage on Wednesday as AUD/USD moved to highs above 0.9230, the highest level for over four months. USD/CAD also retreated sharply to lows near 1.1120 before finding support.
The Euro was hampered by selling against the Australian currency and there was a wider shift in positioning during the day with the Euro at risk given the sharp increase in speculative net longs. EUR/USD was unable to make any impression on resistance towards 1.3850 and retreated to test support below 1.3800 during European trading. Read the rest of this entry »
The dollar came under heavy selling pressure during the late New York session on Monday with suggestions that a large order caught out a market when liquidity was weak. EUR/USD surged to highs around 1.3875 with no new fundamental information before consolidation just below the 1.3850 area.
After the late-session fireworks in New York, Tuesday’s Asian session was devoid of major interest. The Australian dollar maintained a firm tone as AUD/USD probed 2014 highs just above the 0.9150 level with a covering of stale short positions. USD/JPY found solid support on dips towards the 102.00 area. Read the rest of this entry »