European Session – EUR pullback following overnight highs vs. USD, JPY
October 23, 2013 12:42 pm
On Wednesday the market was still coping with the aftershocks of the previous day’s weak employment report in the United States.
Having posted fresh two-year and four-year highs against the dollar and the yen respectively, the euro pulled back. It lost 0.14% against the dollar to trade at 1.3753, while against the yen is was down 0.11% at 133.92.
The euro traded as high as 135.49 against the yen in the aftermath of the employment report, which was the highest since November of 2009.
One possible reason for the euro’s pullback were the losses on most European stock exchanges, following fears during Asian trading that China would tighten monetary policy and that China’s banks were facing escalating problems regarding the level of non-performing loans.
The European Central Bank issued a press release that it will start its comprehensive assessment of the top Eurozone banks in November of 2013.
The assessment will be concluded in October 2014, prior to the assumption of the supervisory role by the ECB for these banks.
The release of the October minutes of the Bank of England’s Monetary Policy Committee meeting helped sterling contain its losses, losing 0.3% against the dollar to 1.6149.
The minutes showed the BoE was generally confident about the UK economic recovery and that the drop in unemployment was happening a little faster than the Bank had anticipated. In addition, the Bank said it was content with the strengthening of the pound, as it helped to contain inflation.
On Wednesday the market was still coping with the aftershocks of the previous day’s weak employment report in the United States.
Having posted fresh two-year and four-year highs against the dollar and the yen respectively, the euro pulled back. It lost 0.14% against the dollar to trade at 1.3753, while against the yen is was down 0.11% at 133.92.
The euro traded as high as 135.49 against the yen in the aftermath of the employment report, which was the highest since November of 2009.
One possible reason for the euro’s pullback were the losses on most European stock exchanges, following fears during Asian trading that China would tighten monetary policy and that China’s banks were facing escalating problems regarding the level of non-performing loans.
The European Central Bank issued a press release that it will start its comprehensive assessment of the top Eurozone banks in November of 2013.
The assessment will be concluded in October 2014, prior to the assumption of the supervisory role by the ECB for these banks.
The release of the October minutes of the Bank of England’s Monetary Policy Committee meeting helped sterling contain its losses, losing 0.3% against the dollar to 1.6149.
The minutes showed the BoE was generally confident about the UK economic recovery and that the drop in unemployment was happening a little faster than the Bank had anticipated. In addition, the Bank said it was content with the strengthening of the pound, as it helped to contain inflation.
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