Asian Session – Yen hovers at four-year lows as dollar remains firm
May 15, 2013 6:45 am
Markets were quiet in the Asian session on Wednesday as there was little on the economic calendar and lack of news to act as a catalyst for any major moves. Most currencies consolidated around previous levels.
The dollar maintained its strength after getting another boost in yesterday’s US Session, on speculation that the US Federal Reserve will soon begin to wind down its quantitative easing program.
Comments made by Fed’s Charles Plosser that he wants this to happen as soon as next month, helped accelerate the dollar rally. The dollar broke past 102 yen, with USDJPY hitting as high as 102.4, the highest since October 2008.
EURUSD reached as low as $1.2930 yesterday, the lowest in over a month, and hovered near this level in today’s Asian session. Adding to euro weakness was the disappointing German ZEW investor sentiment data.
GBPUSD reached as low as $1.5206 in late New York trading, the lowest since April 23. The pair is down more than 2 percent so far this month.
Important data later today will be key for the pound’s direction. The UK claimant count change as well as the Bank of England inflation report are due later.
The Australian dollar remains near 11-month lows after falling below parity with the US dollar on the back of the Australian government’s new budget plan which raised the possibility of further rate cuts by the RBA.
Markets were quiet in the Asian session on Wednesday as there was little on the economic calendar and lack of news to act as a catalyst for any major moves. Most currencies consolidated around previous levels.
The dollar maintained its strength after getting another boost in yesterday’s US Session, on speculation that the US Federal Reserve will soon begin to wind down its quantitative easing program.
Comments made by Fed’s Charles Plosser that he wants this to happen as soon as next month, helped accelerate the dollar rally.
The dollar broke past 102 yen, with USDJPY hitting as high as 102.4, the highest since October 2008.
EURUSD reached as low as $1.2930 yesterday, the lowest in over a month, and hovered near this level in today’s Asian session. Adding to euro weakness was the disappointing German ZEW investor sentiment data.
GBPUSD reached as low as $1.5206 in late New York trading, the lowest since April 23. The pair is down more than 2 percent so far this month.
Important data later today will be key for the pound’s direction. The UK claimant count change as well as the Bank of England inflation report are due later.
The Australian dollar remains near 11-month lows after falling below parity with the US dollar on the back of the Australian government’s new budget plan which raised the possibility of further rate cuts by the RBA.
AUDUSD reached as low as 0.9875.
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