European Session – Sterling tumbles on weak GDP figures
June 27, 2013 12:16 pm
Currency markets were somewhat calmer in European trading on Thursday. Investors feel less nervous that the Federal Reserve will cut off stimulus soon after Fed Bank of Richmond President Jeffrey Lacker said yesterday that the Fed is far from cutting back on its $85 billion a month bond purchase program, which is helping the economic recovery in the US.
The weaker dollar helped riskier assets perform better today currencies like the euro, which rallied and moved off yesterday’s three-week low against the greenback.
EURUSD climbed to a session high of $1.3042, up from yesterday’s low of $1.2984. Euro was also helped by better Euro zone data which showed consumer sentiment rose to 91.3 from 89.5 in May. Economists had forecast a reading of 90.4 for June.
Sterling underperformed despite the broadly weaker dollar. The pound was hurt after disappointing UK data which showed revised GDP contracted more than previously estimated from when it peaked in 2008 prior to the recession to the depths of the recession.
GBPUSD tumbled to $1.5262 from a session high of $1.5338 as a result of the data. The fall is extended from yesterday when the pound was also weighed by comments from Bank of England policy makers who said the UK economy may still need more support and renewed his call for more asset purchases.
Yen weakened against the dollar as demand for the safe haven yen dissipated today during calmer markets. USDJPY gained 0.5 percent to highs of 98.36 yen. The yen also weakened against the euro, with EURJPY rising to 128.08 yen from the session open of 127.46, and up from yesterday’s low of 126.55.
Looking ahead in the US session, markets will focus on comments from Fed speakers to look out for any hints of when the Fed will begin tapering stimulus.
Currency markets were somewhat calmer in European trading on Thursday. Investors feel less nervous that the Federal Reserve will cut off stimulus soon after Fed Bank of Richmond President Jeffrey Lacker said yesterday that the Fed is far from cutting back on its $85 billion a month bond purchase program, which is helping the economic recovery in the US.
The weaker dollar helped riskier assets perform better today currencies like the euro, which rallied and moved off yesterday’s three-week low against the greenback.
EURUSD climbed to a session high of $1.3042, up from yesterday’s low of $1.2984. Euro was also helped by better Euro zone data which showed consumer sentiment rose to 91.3 from 89.5 in May. Economists had forecast a reading of 90.4 for June.
Sterling underperformed despite the broadly weaker dollar. The pound was hurt after disappointing UK data which showed revised GDP contracted more than previously estimated from when it peaked in 2008 prior to the recession to the depths of the recession.
GBPUSD tumbled to $1.5262 from a session high of $1.5338 as a result of the data. The fall is extended from yesterday when the pound was also weighed by comments from Bank of England policy makers who said the UK economy may still need more support and renewed his call for more asset purchases.
Yen weakened against the dollar as demand for the safe haven yen dissipated today during calmer markets. USDJPY gained 0.5 percent to highs of 98.36 yen. The yen also weakened against the euro, with EURJPY rising to 128.08 yen from the session open of 127.46, and up from yesterday’s low of 126.55.
Looking ahead in the US session, markets will focus on comments from Fed speakers to look out for any hints of when the Fed will begin tapering stimulus.
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