Asian Session – Dollar hits 3-week low versus euro on weak US data, gold above 1300
February 14, 2014 7:55 am
Weak US data kept the dollar under pressure, pushing it to three-week lows against the euro. Meanwhile, inflation data from China also led to some caution in the markets, resulting in safe haven demand for the yen.
US retail sales numbers in January missed forecasts while weekly jobless claims rose last week. Chinese consumer inflation was at a 7-month low in January, increasing 2.5%. While this was more-or-less in line with expectations, it was hoped that inflation in the world’s second largest economy would accelerate at a faster pace.
In other news, there was little reaction to news that Italy’s prime minister will resign on Friday. The euro remains strong, extending its rally against the dollar to reach as high as 1.3704 in early European trading hours.
Helping boost the euro was preliminary GDP data from France showing the French economy expanded in the fourth quarter by 0.3% which was a rebound from a contraction in September. Also German preliminary GDP rose 0.4%, which was slightly over expectations for an increase of 0.3%.
The yen gained for a third straight day versus the greenback, up 0.38% in the Asian session today to end at 101.76. The yen also gained versus the euro, up 0.36% to 139.21.
The pound consolidated gains after a strong rally yesterday against the dollar which took it to a 3-year high of 1.6672. Cable ended the Asian session at 1.6651.
The Australian dollar rose above 90 US cents after the China inflation data, before ending the Asian session at 0.8989 with a 0.13% gain versus the US dollar.
Gold extended gains today after breaching the key 1300 level for the first time since November. Gold prices rose to 1310 in the early European session.
Focus will be on the upcoming Eurozone flash GDP data at 10 GMT. From the United States later in the day, industrial production and preliminary University of Michigan Consumer Sentiment reports are scheduled to be released.
Weak US data kept the dollar under pressure, pushing it to three-week lows against the euro. Meanwhile, inflation data from China also led to some caution in the markets, resulting in safe haven demand for the yen.
US retail sales numbers in January missed forecasts while weekly jobless claims rose last week. Chinese consumer inflation was at a 7-month low in January, increasing 2.5%. While this was more-or-less in line with expectations, it was hoped that inflation in the world’s second largest economy would accelerate at a faster pace.
In other news, there was little reaction to news that Italy’s prime minister will resign on Friday. The euro remains strong, extending its rally against the dollar to reach as high as 1.3704 in early European trading hours.
Helping boost the euro was preliminary GDP data from France showing the French economy expanded in the fourth quarter by 0.3% which was a rebound from a contraction in September. Also German preliminary GDP rose 0.4%, which was slightly over expectations for an increase of 0.3%.
The yen gained for a third straight day versus the greenback, up 0.38% in the Asian session today to end at 101.76. The yen also gained versus the euro, up 0.36% to 139.21.
The pound consolidated gains after a strong rally yesterday against the dollar which took it to a 3-year high of 1.6672. Cable ended the Asian session at 1.6651.
The Australian dollar rose above 90 US cents after the China inflation data, before ending the Asian session at 0.8989 with a 0.13% gain versus the US dollar.
Gold extended gains today after breaching the key 1300 level for the first time since November. Gold prices rose to 1310 in the early European session.
Focus will be on the upcoming Eurozone flash GDP data at 10 GMT. From the United States later in the day, industrial production and preliminary University of Michigan Consumer Sentiment reports are scheduled to be released.
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