European Session – Euro tumbles to 10-month low versus Swiss Franc
February 27, 2014 2:26 pm
Safe haven flows mainly directed currency flows today as political tensions mounted in Crimea. The euro was the most impacted by these developments and underperformed against the Swiss Franc, the yen and the dollar.
The euro was already under pressure from fundamentals and focus shifts to next week’s European Central Bank policy meeting. Rising concern over inflation levels in the Eurozone could lead to pressure on the ECB to take action. Today’s weaker print of German CPI added to euro weakness, even though Germany’s employment data came in slightly better than estimates.
The euro slid to a 2-week low against the dollar, touching 1.3642 and ended the session down 0.12% at 1.3669.
Against the yen, the euro fell to its weakest in 2-weeks at 139.55, ending the session down 0.40%.
The Swiss Franc outperformed versus the euro to climb to its highest in 10 months at 1.2155, as risk aversion lifted the safe haven swissie. Sterling was weak against the dollar, ending the session down 0.07% at 1.6659.
The dollar tumbled against the yen to slip to a low of 101.71 from the European session open of 102.37 but bounced back to end the session at 102.08 with a 0.28% loss after some mixed US data. Markets cheered the unexpected rise in US core durable goods orders and ignored the disappointing jobless claims numbers which rose last week.
The market’s attention now turns to Fed Chair Janet Yellen’s testimony at the Senate Banking Committee later today. She is not expected to diverge from her first testimony at the Congress earlier this month, however the Q&A session will be closely watched to see if she will be questioned about the recent string of weak US data and how this will affect the Fed’s tapering program.
Meanwhile, another risk for this pair is tomorrow’s series of data out of Japan on inflation, industrial production, retail sales, manufacturing PMI, unemployment and household spending. The most important will be Japan’s inflation data as this would be used to judge the success of the Bank of Japan’s monetary easing program.
Safe haven flows mainly directed currency flows today as political tensions mounted in Crimea. The euro was the most impacted by these developments and underperformed against the Swiss Franc, the yen and the dollar.
The euro was already under pressure from fundamentals and focus shifts to next week’s European Central Bank policy meeting. Rising concern over inflation levels in the Eurozone could lead to pressure on the ECB to take action. Today’s weaker print of German CPI added to euro weakness, even though Germany’s employment data came in slightly better than estimates.
The euro slid to a 2-week low against the dollar, touching 1.3642 and ended the session down 0.12% at 1.3669.
Against the yen, the euro fell to its weakest in 2-weeks at 139.55, ending the session down 0.40%.
The Swiss Franc outperformed versus the euro to climb to its highest in 10 months at 1.2155, as risk aversion lifted the safe haven swissie.
Sterling was weak against the dollar, ending the session down 0.07% at 1.6659.
The dollar tumbled against the yen to slip to a low of 101.71 from the European session open of 102.37 but bounced back to end the session at 102.08 with a 0.28% loss after some mixed US data. Markets cheered the unexpected rise in US core durable goods orders and ignored the disappointing jobless claims numbers which rose last week.
The market’s attention now turns to Fed Chair Janet Yellen’s testimony at the Senate Banking Committee later today. She is not expected to diverge from her first testimony at the Congress earlier this month, however the Q&A session will be closely watched to see if she will be questioned about the recent string of weak US data and how this will affect the Fed’s tapering program.
Meanwhile, another risk for this pair is tomorrow’s series of data out of Japan on inflation, industrial production, retail sales, manufacturing PMI, unemployment and household spending. The most important will be Japan’s inflation data as this would be used to judge the success of the Bank of Japan’s monetary easing program.
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