European Session – Euro gives up post-Eurogroup gains
March 25, 2013 1:36 pm
The euro is flat against the dollar as it goes into the US trading session. The euro had made a 0.4 percent gain in the Asian trade after markets reacted positively to a Eurogroup deal on Cyprus overnight, that eased fears of another crisis in the euro zone.
EURUSD hit a high of $1.3047 into early European session trading, only to see those gains erased on major profit-taking, bringing the pair back down to a session low of $1.2993, and continued heading lower into the New York trade.
Europe still faces many headwinds – political uncertainty in Italy, and prospects of the European Central Bank easing monetary policy in coming months to support growth –are all expected to weigh on the euro.
Sterling is heading lower from an Asian session high of $1.5258, which was a fresh one and a half month high. GBPUSD is down 0.1 percent since Friday’s close, hitting a European session low of $1.5191.
The pound is being weighed by domestic fundamentals, initially hit today by weak data on UK mortgage approvals. Also in the near term, monetary policy and a weaker economic outlook will weigh on the currency. This comes after Fitch placed the UK’s AAA rating on negative watch on Friday, raising the chance of a downgrade.
Yen is generally weaker today as risk appetite improved. USDJPY is up 0.2 percent. The pair hit a high of 94.95 in early Asia. News flow has been minor, with no fundamental releases to move the pair substantially.
However EURJPY made a larger move lower, due to euro falling broadly going into the North American session. The pair peaked at 123.84 in Asia and has since declined to 122.82 yen.
Looking ahead, this week’s inflation release in Japan, which is expected to show increasing deflationary pressures, will be an important in the lead‐up to the April 4 Bank of Japan policy meeting.
The euro is flat against the dollar as it goes into the US trading session. The euro had made a 0.4 percent gain in the Asian trade after markets reacted positively to a Eurogroup deal on Cyprus overnight, that eased fears of another crisis in the euro zone.
EURUSD hit a high of $1.3047 into early European session trading, only to see those gains erased on major profit-taking, bringing the pair back down to a session low of $1.2993, and continued heading lower into the New York trade.
Europe still faces many headwinds – political uncertainty in Italy, and prospects of the European Central Bank easing monetary policy in coming months to support growth –are all expected to weigh on the euro.
Sterling is heading lower from an Asian session high of $1.5258, which was a fresh one and a half month high. GBPUSD is down 0.1 percent since Friday’s close, hitting a European session low of $1.5191.
The pound is being weighed by domestic fundamentals, initially hit today by weak data on UK mortgage approvals. Also in the near term, monetary policy and a weaker economic outlook will weigh on the currency. This comes after Fitch placed the UK’s
AAA rating on negative watch on Friday, raising the chance of a downgrade.
Yen is generally weaker today as risk appetite improved. USDJPY is up 0.2 percent. The pair hit a high of 94.95 in early Asia. News flow has been minor, with no fundamental releases to move the pair substantially.
However EURJPY made a larger move lower, due to euro falling broadly going into the North American session. The pair peaked at 123.84 in Asia and has since declined to 122.82 yen.
Looking ahead, this week’s inflation release in Japan, which is expected to show increasing deflationary pressures, will be an important in the lead‐up to the April 4 Bank of Japan policy meeting.
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