Asian Session – Dollar edges lower against yen after disappointing US pending home sales
December 31, 2013 7:58 am
The Nikkei was closed today for a holiday in Japan, and there were no economic data releases, resulting in a quiet Asian session.
The dollar eased against the yen after a disappointing report on US pending home sales during yesterday‘s US session. Despite a gain of 0.2% in November in pending home sales, the number was much lower than the expected 1.5% increase. This prompted some dollar selling.
The dollar slipped 0.17% against the yen during the Asian session to 104.97, moving off yesterday’s 5-year high of 105.40.
Losses for the dollar are however expected to be limited in the long run as markets focus on the growing divergence between the Federal Reserve and Bank of Japan’s monetary policies. A weakening yen will help lift the dollar/yen pair, which is set to end the year with the biggest yearly percentage gain since 1979.
Profit-taking pressured the euro lower against the yen after having reached a 5-year high of 145.65 last Friday. The pair ended the Asian session today with a 0.28% loss at 144.71.
The euro slipped against the dollar by 0.11% to 1.3788 but traded close to yesterday’s highs. Upbeat comments over the weekend from ECB Chief Mario Draghi about no urgent need for rate cuts is helping support the euro.
There will not be any data releases during the upcoming European session. In the US session, Consumer confidence data are scheduled for release by the Conference Board. Chicago PMI data are also due.
Trading activity is expected to be low today ahead of the New Year’s Day holiday on Wednesday.
The Nikkei was closed today for a holiday in Japan, and there were no economic data releases, resulting in a quiet Asian session.
The dollar eased against the yen after a disappointing report on US pending home sales during yesterday‘s US session. Despite a gain of 0.2% in November in pending home sales, the number was much lower than the expected 1.5% increase. This prompted some dollar selling.
The dollar slipped 0.17% against the yen during the Asian session to 104.97, moving off yesterday’s 5-year high of 105.40.
Losses for the dollar are however expected to be limited in the long run as markets focus on the growing divergence between the Federal Reserve and Bank of Japan’s monetary policies. A weakening yen will help lift the dollar/yen pair, which is set to end the year with the biggest yearly percentage gain since 1979.
Profit-taking pressured the euro lower against the yen after having reached a 5-year high of 145.65 last Friday. The pair ended the Asian session today with a 0.28% loss at 144.71.
The euro slipped against the dollar by 0.11% to 1.3788 but traded close to yesterday’s highs. Upbeat comments over the weekend from ECB Chief Mario Draghi about no urgent need for rate cuts is helping support the euro.
There will not be any data releases during the upcoming European session. In the US session, Consumer confidence data are scheduled for release by the Conference Board. Chicago PMI data are also due.
Trading activity is expected to be low today ahead of the New Year’s Day holiday on Wednesday.
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