Asian session – Euro breaks 1.38 against dollar, new 2-year high
October 24, 2013 6:51 am
The dollar lost ground again this morning, extending its losses from the Asian session.
The euro made a new 2-year high of 1.3807 as the Asian session was drawing to a close, taking out the 1.38 barrier and continuing its advance.
The dollar however managed to gain versus the Japanese yen, rising by 0.18% to 97.54, as positive risk appetite did not favor the yen.
The market brushed off worries from a rise in Chinese money market rates, as the 7-day repo rate opened 1% higher to 5%.
It looked like Chinese authorities were abstaining from pumping liquidity and letting money market rates climb higher in order to combat a rise in property prices.
Markets focused instead on the rise of Chinese HSBC PMI manufacturing index to 50.9, which is a 7-month high, up from 50.2 during the previous month.
This boosted the Australian dollar, which rose 0.46% against the US dollar to 0.9666.
Sterling rose 0.27% to 1.6207 against the dollar.
The market was looking ahead to the release of October flash PMI business confidence figures from the Eurozone, which could give an indication of whether the recovery in the Eurozone is on track or not.
The dollar lost ground again this morning, extending its losses from the Asian session.
The euro made a new 2-year high of 1.3807 as the Asian session was drawing to a close, taking out the 1.38 barrier and continuing its advance.
The dollar however managed to gain versus the Japanese yen, rising by 0.18% to 97.54, as positive risk appetite did not favor the yen.
The market brushed off worries from a rise in Chinese money market rates, as the 7-day repo rate opened 1% higher to 5%.
It looked like Chinese authorities were abstaining from pumping liquidity and letting money market rates climb higher in order to combat a rise in property prices.
Markets focused instead on the rise of Chinese HSBC PMI manufacturing index to 50.9, which is a 7-month high, up from 50.2 during the previous month.
This boosted the Australian dollar, which rose 0.46% against the US dollar to 0.9666.
Sterling rose 0.27% to 1.6207 against the dollar.
The market was looking ahead to the release of October flash PMI business confidence figures from the Eurozone, which could give an indication of whether the recovery in the Eurozone is on track or not.
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