2013-03-14 13:40 European Session – Dollar maintains strength as euro declines
March 14, 2013 1:40 pm
Dollar maintained strength against most major counterparts after being boosted by strong US retail sales and jobs data recently. With little else in terms of fundamentals to lift risk currencies, the greenback is in demand. There is strong optimism that the US economic recovery is gaining momentum.
The ICE dollar index hit the highest in seven months, breaching 83 points.
There is a growing divide between the US and Europe right now. In contrast to the US, recent dismal economic data out of the euro zone, coupled with political uncertainty in Italy and a likely bailout for Cyprus, kept a gloomy outlook and dampened demand for the single currency. Focus will be on the EU Summit concluding tomorrow.
Euro is hovering at its lowest levels in three-months against the dollar, still below the key $1.3000 level , with a downside bias. EURUSD opened in Europe at $1.2957 and drifted lower towards $1.2912 going into the North American session. The euro has decline 6 percent from its peak early last month.
GBPUSD has been relatively range bound this week, with congestion around $1.4930. Focus on the Bank of England has increased, following the release of the central bank’s quarterly bulletin today. The BOE has a more accommodative policy stance compared to the Federal Reserve, and this is weighing o the pound.
The yen weakened for a second day against the dollar following Japan’s lower house approval of all three candidates for the Bank of Japan governor position. The upper house vote is expected tomorrow. The selection of a candidate who is bolder on monetary policy will result in a weaker yen and give USDJPY more upside.
The pair opened in Europe at 95.97and climbed higher towards 96.57 going into the New York trade, given an extra lift by a drop in US unemployment claims. EURJPY hit a high of 125.22 before steadying to 124.70.
Dollar maintained strength against most major counterparts after being boosted by strong US retail sales and jobs data recently. With little else in terms of fundamentals to lift risk currencies, the greenback is in demand. There is strong optimism that the US economic recovery is gaining momentum.
The ICE dollar index hit the highest in seven months, breaching 83 points.
There is a growing divide between the US and Europe right now. In contrast to the US, recent dismal economic data out of the euro zone, coupled with political uncertainty in Italy and a likely bailout for Cyprus, kept a gloomy outlook and dampened demand for the single currency. Focus will be on the EU Summit concluding tomorrow.
Euro is hovering at its lowest levels in three-months against the dollar, still below the key $1.3000 level , with a downside bias. EURUSD opened in Europe at $1.2957 and drifted lower towards $1.2912 going into the North American session. The euro has decline 6 percent from its peak early last month.
GBPUSD has been relatively range bound this week, with congestion around $1.4930. Focus on the Bank of England has increased, following the release of the central bank’s quarterly bulletin today. The BOE has a more accommodative policy stance compared to the Federal Reserve, and this is weighing o the pound.
The yen weakened for a second day against the dollar following Japan’s lower house approval of all three
candidates for the Bank of Japan governor position. The upper house vote is expected tomorrow. The selection of a candidate who is bolder on monetary policy will result in a weaker yen and give USDJPY more upside.
The pair opened in Europe at 95.97and climbed higher towards 96.57 going into the New York trade, given an extra lift by a drop in US unemployment claims. EURJPY hit a high of 125.22 before steadying to 124.70.
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