Asian Session – Yen declines as Japan data lift equity markets
June 28, 2013 6:17 am
Strong Asian equity markets on Friday helped keep an upbeat mood in the markets, buoying risk currencies, while month-end flows as well as quarter-end and half-year flows dominated markets as investors squared positions.
Demand for the safe haven yen weakened it, leading it on track for a second weekly drop versus the dollar. Japanese data were upbeat, with industrial production making a particularly strong showing. Core CPI was unchanged from a year earlier, but rose 0.2 percent compared to April.
Data gave Abenomics a boost, as there are signs of reflation. Japan has been undergoing deflation in recent years, which has affected economic growth on Japan, and PM Abe has initiated stimulus measures recently to boost the economy.
USDJPY rallied on strong volume, climbing to a more than two-week high at 99.01 yen from 98.32.
EURJPY also rose to a session high of 129.36 from the session open of 128.18.
Euro rebounded against the dollar in Asian trading, making tracks away from lows earlier this week. Short-covering was a factor, especially ahead of month, quarter, half and, for some, financial year end.
Fed speakers overnight, weakening the dollar and lower US yields helped buoy the euro.
EURUSD moved up from $1.3036 to 1.3072, aided by EURJPY strength as yen was sold across the board.
Sterling bounced in Asia, with GBPUSD tracking higher to $1.5278 alongside EURUSD , moving off lows of $1.5200 reached yesterday after weak UK GDP data.
AUDUSD opened in Asia at $0.9273 and fell from an early high of $0.9285 to $0.9214 before rebounding to end the session flat. Month, quarter, half and financial year-end flows dominated.
The fall in gold prices also weighed on the commodity-linked aussie as the precious metal fell to $1180/oz.
Strong Asian equity markets on Friday helped keep an upbeat mood in the markets, buoying risk currencies, while month-end flows as well as quarter-end and half-year flows dominated markets as investors squared positions.
Demand for the safe haven yen weakened it, leading it on track for a second weekly drop versus the dollar. Japanese data were upbeat, with industrial production making a particularly strong showing. Core CPI was unchanged from a year earlier, but rose 0.2 percent compared to April.
Data gave Abenomics a boost, as there are signs of reflation. Japan has been undergoing deflation in recent years, which has affected economic growth on Japan, and PM Abe has initiated stimulus measures recently to boost the economy.
USDJPY rallied on strong volume, climbing to a more than two-week high at 99.01 yen from 98.32.
EURJPY also rose to a session high of 129.36 from the session open of 128.18.
Euro rebounded against the dollar in Asian trading, making tracks away from lows earlier this week. Short-covering was a factor, especially ahead of month, quarter, half and, for some, financial year end.
Fed speakers overnight, weakening the dollar and lower US yields helped buoy the euro.
EURUSD moved up from $1.3036 to 1.3072, aided by EURJPY strength as yen was sold across the board.
Sterling bounced in Asia, with GBPUSD tracking higher to $1.5278 alongside EURUSD , moving off lows of $1.5200 reached yesterday after weak UK GDP data.
AUDUSD opened in Asia at $0.9273 and fell from an early high of $0.9285 to $0.9214 before rebounding to end the session flat. Month, quarter, half and financial year-end flows dominated.
The fall in gold prices also weighed on the commodity-linked aussie as the precious metal fell to $1180/oz.
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