Asian session – Dollar, euro up versus yen as Japan reports trade deficit
December 18, 2013 7:51 am
The dollar gained against the yen, recouping the losses of the previous US session during which the pair traded as low as 102.49. The dollar rose 0.27% to 102.94, having risen slightly above 103 yen previously.
The euro also managed to gain against the yen, posting a gain of 0.33% to trade at 141.78.
In economic news, the Japanese trade deficit for November was slightly smaller-than-expected at 1.29 trillion yen. It did mark however more than a year of consecutive Japanese trade deficits, mainly as a result of the weaker yen that made imports more expensive. Pricey fuel imports after the Fukushima accident contributed to this. Japanese exports were also substantially higher as car shipments to the US and China rose strongly.
In China, house prices accelerated to a 9.9% annual gain during November, compared to a 9.6% gain during October. The trend of fast house price increases could become an issue for Chinese authorities.
The euro was little changed against the dollar, higher by 0.04% to 1.3771. Attention turned towards the Federal Reserve and its decision whether to reduce stimulus later in the day.
Concerning the euro, the region’s finance ministers appeared to be close to a deal on who would finance the closing down of banks, resolving a stumbling block to forge ahead with a banking union.
The pound was slightly stronger against the dollar, rising by 0.14% to 1.6284. The pound lost significant ground during the previous day’s European session as UK inflation was slightly lower-than-expected, potentially taking pressure off the Bank of England to reduce monetary accommodation at some point in the future.
The Australian dollar recovered slightly, gaining 0.10% to 0.8901, after making a new low of 0.8881 the previous day. Reserve Bank of Australia Governor Glenn Stevens said that the 0.90 level was unsuitable for the Australian economy, maintaining the ‘verbal intervention’ by the RBA.
During the European session, the market will focus on the German IFO business sentiment survey and the UK’s employment statistics.
The dollar gained against the yen, recouping the losses of the previous US session during which the pair traded as low as 102.49. The dollar rose 0.27% to 102.94, having risen slightly above 103 yen previously.
The euro also managed to gain against the yen, posting a gain of 0.33% to trade at 141.78.
In economic news, the Japanese trade deficit for November was slightly smaller-than-expected at 1.29 trillion yen. It did mark however more than a year of consecutive Japanese trade deficits, mainly as a result of the weaker yen that made imports more expensive. Pricey fuel imports after the Fukushima accident contributed to this. Japanese exports were also substantially higher as car shipments to the US and China rose strongly.
In China, house prices accelerated to a 9.9% annual gain during November, compared to a 9.6% gain during October. The trend of fast house price increases could become an issue for Chinese authorities.
The euro was little changed against the dollar, higher by 0.04% to 1.3771. Attention turned towards the Federal Reserve and its decision whether to reduce stimulus later in the day.
Concerning the euro, the region’s finance ministers appeared to be close to a deal on who would finance the closing down of banks, resolving a stumbling block to forge ahead with a banking union.
The pound was slightly stronger against the dollar, rising by 0.14% to 1.6284. The pound lost significant ground during the previous day’s European session as UK inflation was slightly lower-than-expected, potentially taking pressure off the Bank of England to reduce monetary accommodation at some point in the future.
The Australian dollar recovered slightly, gaining 0.10% to 0.8901, after making a new low of 0.8881 the previous day. Reserve Bank of Australia Governor Glenn Stevens said that the 0.90 level was unsuitable for the Australian economy, maintaining the ‘verbal intervention’ by the RBA.
During the European session, the market will focus on the German IFO business sentiment survey and the UK’s employment statistics.
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