January 10th, 2014
Asian trading was generally subdued on Friday with caution prevailing ahead of the key US employment data. A weaker than expected Chinese trade report did not have a major market impact with USD/JPY edging towards the 105 level.
The early European session was marked by UK economic data which was significantly weaker than expected. Industrial production was unchanged for November compared with a consensus 0.4% monthly increase and the there was also an unexpected sharp decline for construction output. The data continues to cause underlying confusion given a widening disparity between PMI survey data and official releases. Read the rest of this entry »
January 9th, 2014
There was a broadly uneventful Asian session on Thursday with the latest Chinese inflation data not having a major currency impact. The Euro held broadly stable in Europe with EUR/USD gaining support from the ability to hold 1.3550 support on Wednesday while there was solid selling interest on rallies. There was a stronger reading for German industrial production and Spanish yields continued to decline, but French concerns increased following a lacklustre Treasury auction. Read the rest of this entry »
January 8th, 2014
Stronger equity markets were the dominant influence in Asian trading on Wednesday with Japanese stocks rising strongly and the Topix index rose to the highest level since July 2008. The correlation between Nikkei index gains and yen weakness was sustained during the session with USD/JPY moving back to the 105 level while there were renewed yen losses on the main crosses. Read the rest of this entry »
January 7th, 2014
Overnight, Yellen was confirmed by the Senate as the next Federal Reserve Chairman, although the vote in favour was the narrowest on record and broadly along party lines which continued to indicate polarised political views surrounding the monetary process.
The latest CFTC positioning data recorded a decline to net long dollar positions to a six-week low and a continued long Euro position which should tend to limit dollar selling pressure against European currencies and Asian action was relatively subdued with a solid dollar tone. Read the rest of this entry »
January 6th, 2014
Trends in risk appetite tended to dominate Asian markets on Monday. There was a weaker than expected reading for the Chinese PMI services index which maintained unease surrounding the wider outlook, especially with further concerns over the financial sector as fresh regulations were announeced for the shadow-banking sector.
The Nikkei index fell by over 2% which also tended to provide some yen support as short positions were reduced and USD/JPY retreated towards 104.20. There was again solid dollar buying support on dips given an underlying lack of confidence in Japan’s fundamentals. Read the rest of this entry »