Asian Session – Dollar stabilizes on budget deal news
December 11, 2013 7:38 am
Major currency pairs registered relatively minor changes during today’s Asian session. The euro was little changed versus the US dollar at 1.3762, having hit a high of 1.3795 during the previous day – not far from its two-year high of 1.3831 made six weeks ago.
According to newswires, the euro was helped by end-of-year repatriation of funds by European banks, as well as prospects for a deal setting the bank resolution framework for a banking union within the Eurozone.
The fact that the ECB did not give any concrete clues about future monetary stimulus during its meeting the previous week also helped the euro.
The euro continued to return some of its latest gains back to the yen however, shedding 0.08% to trade at 141.36.
The dollar fell 0.10% against the yen to 102.72.
On the one hand the dollar was helped by the budget deal in the United States, which means there will not be a repeat of the bruising fight during October when the government was shut down. The deal still needs to be approved by the House of Representatives and the Senate.
On the other hand, the prevailing view is that the Federal Reserve will not begin to taper during its meeting next week, which could be hurting the dollar. The budget deal does slightly increase the chances of December tapering however.
In economic news, there was relatively upbeat data out of Japan concerning November wholesale prices and October machinery orders. Strong machinery orders are a positive indication of investment in equipment by companies.
Major currency pairs registered relatively minor changes during today’s Asian session. The euro was little changed versus the US dollar at 1.3762, having hit a high of 1.3795 during the previous day – not far from its two-year high of 1.3831 made six weeks ago.
According to newswires, the euro was helped by end-of-year repatriation of funds by European banks, as well as prospects for a deal setting the bank resolution framework for a banking union within the Eurozone.
The fact that the ECB did not give any concrete clues about future monetary stimulus during its meeting the previous week also helped the euro.
The euro continued to return some of its latest gains back to the yen however, shedding 0.08% to trade at 141.36.
The dollar fell 0.10% against the yen to 102.72.
On the one hand the dollar was helped by the budget deal in the United States, which means there will not be a repeat of the bruising fight during October when the government was shut down. The deal still needs to be approved by the House of Representatives and the Senate.
On the other hand, the prevailing view is that the Federal Reserve will not begin to taper during its meeting next week, which could be hurting the dollar. The budget deal does slightly increase the chances of December tapering however.
In economic news, there was relatively upbeat data out of Japan concerning November wholesale prices and October machinery orders. Strong machinery orders are a positive indication of investment in equipment by companies.
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