Asian Session – Dollar weakens against yen, US retail sales in focus
April 12, 2013 7:00 am
After such a strong rally in the dollar against the yen this week, the USDJPY moved off a four-year high of 99.93 yen hit in late US session trading yesterday. Profit taking brought the pair down to a low of 99.34.
Yen is expected to remain weak overall due to recent monetary policy measures adopted by the Bank of Japan to stimulate the Japanese economy and fight deflation.
Meanwhile the dollar was lifted yesterday after a drop in initial US jobless claims, but the greenback’s move will be directed by more data out of the US today on retail sales. Any disappointment in the numbers could extend the dollar’s decline.
The dollar was also down against the euro, losing 0.9 percent on the week. EURUSD hit a high of $1.3166 yesterday after being lifted by a successful Italy 3-year debt auction that reduced borrowing costs. This the highest level the euro has reached since the end of February.
Euro gave up some gains against the yen. EURJPY rose 0.5 percent yesterday to the highest level in more than three years, hitting 131.11 yen. The pair eased down to 130.28 in the Asian trade today.
Looking ahead to the European session we have euro zone industrial data due to be released. Also, the Eurogroup meeting is being held today.
After such a strong rally in the dollar against the yen this week, the USDJPY moved off a four-year high of 99.93 yen hit in late US session trading yesterday. Profit taking brought the pair down to a low of 99.34.
Yen is expected to remain weak overall due to recent monetary policy measures adopted by the Bank of Japan to stimulate the Japanese economy and fight deflation.
Meanwhile the dollar was lifted yesterday after a drop in initial US jobless claims, but the greenback’s move will be directed by more data out of the US today on retail sales. Any disappointment in the numbers could extend the dollar’s decline.
The dollar was also down against the euro, losing 0.9 percent on the week. EURUSD hit a high of $1.3166 yesterday after being lifted by a successful Italy 3-year debt auction that reduced borrowing costs. This the highest level the euro has reached since the end of February.
Euro gave up some gains against the yen. EURJPY rose 0.5 percent yesterday to the highest level in more than three years, hitting 131.11 yen. The pair eased down to 130.28 in the Asian trade today.
Looking ahead to the European session we have euro zone industrial data due to be released. Also, the Eurogroup meeting is being held today.
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