Asian Session – Dollar eases against yen as focus turns to ADP jobs data
February 5, 2014 7:32 am
The reluctance to take risks led to safe haven demand during the Asian session on Wednesday, helping buoy the yen as investors remain nervous about emerging markets. Also a string of key risk events happening in the next two days is keeping caution in the markets.
Later in the day US private payrolls will be released by ADP and any disappointment will be taken negatively by investors. US ISM non-manufacturing data are also due today followed by the ECB on Thursday and nonfarm payrolls on Friday.
On Tuesday, US factory orders in December fell 1.5% which was slightly better- than- expected but November’s growth was revised down to negative 1.5%.
Meanwhile, comments from Fed policy makers Charles Evans and Jeffrey Lacker signaled that it would take a lot more to deviate from the $10 billion cuts in the Fed’s monthly bond buying, setting a high bar for any changes to tapering.
The dollar gave back some ground gained against the yen but remains off an 11-week low. The dollar fell after reaching a session high of 101.75 yen to end the Asian session with a 0.31% loss at 101.32.
The euro eased 0.10% against the dollar to end at 1.3504. The single currency is being weighed down by speculation that the threat of deflation might pressure the European Central Bank into easing policy at its meeting on Thursday as recent data show the Eurozone’s inflation rate is well below the ECB’s target.
Immediate risk for the euro will be today’s Eurozone retail sales and final services PMI data.
Sterling consolidated in a tight range in Asia between 1.6320-40 but maintained gains following the bounce yesterday on the back of a strong UK construction PMI. UK services PMI data due later today will be a key risk event for the pound.
The Australian dollar eased lower against the US dollar today to reverse yesterday’s RBA- induced rally. The aussie ended the session at 0.8904 with a 0.22% loss.
The reluctance to take risks led to safe haven demand during the Asian session on Wednesday, helping buoy the yen as investors remain nervous about emerging markets. Also a string of key risk events happening in the next two days is keeping caution in the markets.
Later in the day US private payrolls will be released by ADP and any disappointment will be taken negatively by investors. US ISM non-manufacturing data are also due today followed by the ECB on Thursday and nonfarm payrolls on Friday.
On Tuesday, US factory orders in December fell 1.5% which was slightly better- than- expected but November’s growth was revised down to negative 1.5%.
Meanwhile, comments from Fed policy makers Charles Evans and Jeffrey Lacker signaled that it would take a lot more to deviate from the $10 billion cuts in the Fed’s monthly bond buying, setting a high bar for any changes to tapering.
The dollar gave back some ground gained against the yen but remains off an 11-week low. The dollar fell after reaching a session high of 101.75 yen to end the Asian session with a 0.31% loss at 101.32.
The euro eased 0.10% against the dollar to end at 1.3504. The single currency is being weighed down by speculation that the threat of deflation might pressure the European Central Bank into easing policy at its meeting on Thursday as recent data show the Eurozone’s inflation rate is well below the ECB’s target.
Immediate risk for the euro will be today’s Eurozone retail sales and final services PMI data.
Sterling consolidated in a tight range in Asia between 1.6320-40 but maintained gains following the bounce yesterday on the back of a strong UK construction PMI. UK services PMI data due later today will be a key risk event for the pound.
The Australian dollar eased lower against the US dollar today to reverse yesterday’s RBA- induced rally. The aussie ended the session at 0.8904 with a 0.22% loss.
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