European Session – Sterling pauses rally after hitting 4-year high
February 17, 2014 2:39 pm
Monday’s European Session was relatively quiet since there were no key announcements and the US markets were closed for the Presidents Day holiday.
The main theme of the currency markets was dollar weakness, as US data from last week continued to weigh on the greenback. The euro retained gains made against the dollar in the absence of new data, after being buoyed by Friday’s strong GDP data from France and Germany.
The euro gained 0.31% against the pound to end the European session at 0.8192. Against the yen the euro was up 0.15% to 139.55 but gave up earlier gains versus the dollar to end down 0.09% at 1.3701.
German ZEW investor sentiment data due to be released on Tuesday will be watched to see if they will have an impact on the euro.
Sterling pulled back from a 4-year high against the dollar as profit-taking brought it down 0.41% to 1.6721. UK inflation data will be released tomorrow and employment data on Wednesday. These will be important risk events for the pound.
The dollar managed to rebound against the yen to gain 0.27% to 101.88. The yen was under pressure following weak Japanese GDP data that was released earlier today.
Tomorrow’s Bank of Japan monetary policy statement will be closely watched to look out for any hints in the Bank’s intention on adding to monetary policy easing. Today’s release of fourth quarter growth figures spurred speculation that the BOJ may have to do more to stimulate the Japanese economy.
Monday’s European Session was relatively quiet since there were no key announcements and the US markets were closed for the Presidents Day holiday.
The main theme of the currency markets was dollar weakness, as US data from last week continued to weigh on the greenback. The euro retained gains made against the dollar in the absence of new data, after being buoyed by Friday’s strong GDP data from France and Germany.
The euro gained 0.31% against the pound to end the European session at 0.8192. Against the yen the euro was up 0.15% to 139.55 but gave up earlier gains versus the dollar to end down 0.09% at 1.3701.
German ZEW investor sentiment data due to be released on Tuesday will be watched to see if they will have an impact on the euro.
Sterling pulled back from a 4-year high against the dollar as profit-taking brought it down 0.41% to 1.6721. UK inflation data will be released tomorrow and employment data on Wednesday. These will be important risk events for the pound.
The dollar managed to rebound against the yen to gain 0.27% to 101.88. The yen was under pressure following weak Japanese GDP data that was released earlier today.
Tomorrow’s Bank of Japan monetary policy statement will be closely watched to look out for any hints in the Bank’s intention on adding to monetary policy easing. Today’s release of fourth quarter growth figures spurred speculation that the BOJ may have to do more to stimulate the Japanese economy.
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