Asian Session – Yen gains on flight to safety as US budget gridlock continues
October 7, 2013 6:22 am
Flight to safety led to a rise in the Japanese yen in Monday’s Asian session trading, as concerns linger over the ongoing US government shutdown, now into its seventh day.
Dollar index hovers at an 8-month low over the US budget standoff. Republican US House Speaker Boehner said over the weekend there is “no way” Republican lawmakers will agree to a measure to raise the debt ceiling unless it includes conditions to rein in deficit spending.
The dollar fell against the yen in reaction to these comments which raised concern there has been no progress in negotiations. Meanwhile the debt ceiling is looming.
USDJPY opened in Asia with a gap lower at 97.19 compared to Friday’s close of 97.45 yen. It traded along key support at 97.00.
JPY crosses traded lower, with EURJPY down from 132.00 to 131.61 and GBPJPY lower from 156.04 to 155.55. AUDJPY fell from 91.95 to 91.38
Euro stayed well supported above $1.3550 in Asia . It opened today with a gap higher at $1.3562 compared to Friday’s close of $1.3554 and moved higher to $1.3573.
GBPUSD rose from an open of $1.6021 to $1.6047 on broad dollar weakness and sterling looks to benefit from continuing risk-off sentiment.
USDCHF fell back from 0.9070 to 0.8966 in Asia on broad risk aversion.
Flight to safety led to a rise in the Japanese yen in Monday’s Asian session trading, as concerns linger over the ongoing US government shutdown, now into its seventh day.
Dollar index hovers at an 8-month low over the US budget standoff. Republican US House Speaker Boehner said over the weekend there is “no way” Republican lawmakers will agree to a measure to raise the debt ceiling unless it includes conditions to rein in deficit spending.
The dollar fell against the yen in reaction to these comments which raised concern there has been no progress in negotiations. Meanwhile the debt ceiling is looming.
USDJPY opened in Asia with a gap lower at 97.19 compared to Friday’s close of 97.45 yen. It traded along key support at 97.00.
JPY crosses traded lower, with EURJPY down from 132.00 to 131.61 and GBPJPY lower from 156.04 to 155.55. AUDJPY fell from 91.95 to 91.38
Euro stayed well supported above $1.3550 in Asia . It opened today with a gap higher at $1.3562 compared to Friday’s close of $1.3554 and moved higher to $1.3573.
GBPUSD rose from an open of $1.6021 to $1.6047 on broad dollar weakness and sterling looks to benefit from continuing risk-off sentiment.
USDCHF fell back from 0.9070 to 0.8966 in Asia on broad risk aversion.
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