Asian Session – Yen weakens on record trade deficit
January 14, 2014 7:24 am
The yen gave back some gains made recently against the dollar after Japan’s disappointing current account data dented sentiment on the Japanese currency today.
This gave a chance for the dollar to recoup losses made after a huge tumble following disappointing US nonfarm payrolls data on Friday. The weaker jobs number caused a sell-off in the dollar as markets were concerned about the health of the US economy and there was some speculation that a Fed rate hike may be further delayed. Investors were forced to unwind stretched short positions on the yen.
The dollar climbed back from a 1-month low to gain 0.5% to 103.51 in the Asian session today, off Monday’s low of 102.84.
A trade report from Japan today showed that the country’s current account recorded a larger deficit in November, for a second consecutive month, weighing further on Japan’s balance of payments. This is a record deficit in November and will dent sentiment on the yen.
The euro remained steady against the dollar, close to Friday’s highs when it rallied on the back of the US jobs report. After a slight pullback from the Asian session open of 1.3670, the euro ended the Asian session at 1.3666, down 0.07% but off a 1-month low of $1.3548 hit on Thursday.
Sterling consolidated losses after falling on Monday against the dollar. Key risk for the sterling will be UK inflation data due later today. The pound ended in Asia up 0.02% at $1.6385, rebounding slightly from yesterday’s low of $1.6346.
The Australian dollar, which has benefited from weakness in its US counterpart and hit a one-month high on Monday, has since retreated, down to $0.9037. Aussie is down 0.2% and off Monday’s high of $0.9085.
Key data to watch for in the European session will be UK CPI and Euro zone industrial production data. During the US session, US retail sales data are scheduled for release.
The yen gave back some gains made recently against the dollar after Japan’s disappointing current account data dented sentiment on the Japanese currency today.
This gave a chance for the dollar to recoup losses made after a huge tumble following disappointing US nonfarm payrolls data on Friday. The weaker jobs number caused a sell-off in the dollar as markets were concerned about the health of the US economy and there was some speculation that a Fed rate hike may be further delayed. Investors were forced to unwind stretched short positions on the yen.
The dollar climbed back from a 1-month low to gain 0.5% to 103.51 in the Asian session today, off Monday’s low of 102.84.
A trade report from Japan today showed that the country’s current account recorded a larger deficit in November, for a second consecutive month, weighing further on Japan’s balance of payments. This is a record deficit in November and will dent sentiment on the yen.
The euro remained steady against the dollar, close to Friday’s highs when it rallied on the back of the US jobs report. After a slight pullback from the Asian session open of 1.3670, the euro ended the Asian session at 1.3666, down 0.07% but off a 1-month low of $1.3548 hit on Thursday.
Sterling consolidated losses after falling on Monday against the dollar. Key risk for the sterling will be UK inflation data due later today. The pound ended in Asia up 0.02% at $1.6385, rebounding slightly from yesterday’s low of $1.6346.
The Australian dollar, which has benefited from weakness in its US counterpart and hit a one-month high on Monday, has since retreated, down to $0.9037. Aussie is down 0.2% and off Monday’s high of $0.9085.
Key data to watch for in the European session will be UK CPI and Euro zone industrial production data. During the US session, US retail sales data are scheduled for release.
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