The Asian session on Thursday was relatively quiet as most investors are waiting on the sidelines for the European Central Bank meeting later today, while volumes were light due to the U.S. Independence Day holiday today.
Risk aversion was back and safe haven assets were in demand, giving the yen a lift. As a result, USDJPY edged down back below the key 100.00 yen level. The pair traded between 99.68 and 100.stabilize around 99.80 after some strong U.S. jobs related data.
Euro ticked down in today’s Asian session ahead of key risk event. EURUSD opened the session at $1.3007 and after hitting an early high of $1.3022 it fell to $1.2986.
The ECB President Mario Draghi talks later after the central bank’s policy meeting and is expected to reiterate that an exit from loose monetary policy remains distant. Expectations are for the ECB to keep its benchmark interest rate at 0.5 percent.
Meanwhile concerns about the euro zone debt crisis are back to the fore as a result of political uncertainty in Portugal. Yields on Portuguese sovereign debt surged earlier this week after two of the nation’s financial ministers resigned.
Another key central bank meeting today will be held by the Bank of England, where new governor Mark Carney will be making his first appearance. Interest rates are expected to remain at record low 0.50 percent.
Yesterday, sterling jumped over 170 pips to a high of $1.5303 after strong U.K. services PMI data. GBPUSD eased slightly lower today to $1.5250.
The Asian session on Thursday was relatively quiet as most investors are waiting on the sidelines for the European Central Bank meeting later today, while volumes were light due to the U.S. Independence Day holiday today.
Risk aversion was back and safe haven assets were in demand, giving the yen a lift. As a result, USDJPY edged down back below the key 100.00 yen level. The pair traded between 99.68 and 100.stabilize around 99.80 after some strong U.S. jobs related data.
Euro ticked down in today’s Asian session ahead of key risk event. EURUSD opened the session at $1.3007 and after hitting an early high of $1.3022 it fell to $1.2986.
The ECB President Mario Draghi talks later after the central bank’s policy meeting and is expected to reiterate that an exit from loose monetary policy remains distant. Expectations are for the ECB to keep its benchmark interest rate at 0.5 percent.
Meanwhile concerns about the euro zone debt crisis are back to the fore as a result of political uncertainty in Portugal. Yields on Portuguese sovereign debt surged earlier this week after two of the nation’s financial ministers resigned.
Another key central bank meeting today will be held by the Bank of England, where new governor Mark Carney will be making his first appearance. Interest rates are expected to remain at record low 0.50 percent.
Yesterday, sterling jumped over 170 pips to a high of $1.5303 after strong U.K. services PMI data. GBPUSD eased slightly lower today to $1.5250.
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