US Session – Dollar boosted by rise in US factory orders
April 2, 2013 8:31 pm
The dollar was boosted in Tuesday’s US trading session by upbeat US economic data which showed factory orders rose 3 percent in February, the most in five months. The gain was fueled by increased aircraft orders.
The dollar rose 0.2 percent against the yen, to a high of 93.54 yen.
Meanwhile, the yen is also weakening ahead of the Bank of Japan policy meeting which begins on Wednesday and ends on Thursday.
The market is positioning itself for the first Bank of Japan policy meeting under new Governor Haruhiko Kuroda, who is facing pressure from Prime Minister Shinzo Abe to implement easy monetary policy. This is likely to include more quantitative easing in the form of more asset purchases by the central bank.
Yen also weakened against the euro, with EURJPY hitting an intraday high of 120.13 before steadying around 119.60.
Euro was weak against the dollar, after being weighed down by data raising concerns that the euro zone will struggle to emerge from recession. The unemployment rate hit a record high of 12 percent while a series of PMIs across the region showed contraction.
EURUSD touched lows of $1.2812 in the US session, despite a brief rise to $1.2845 after the US data. But risk aversion set back in, as focus turns to the European Central Bank meeting on Thursday.
Sterling made huge losses against the dollar, with GBPUSD tumbling to $1.5105, after being weighed down by dismal UK PMI data.
The dollar was boosted in Tuesday’s US trading session by upbeat US economic data which showed factory orders rose 3 percent in February, the most in five months. The gain was fueled by increased aircraft orders.
The dollar rose 0.2 percent against the yen, to a high of 93.54 yen.
Meanwhile, the yen is also weakening ahead of the Bank of Japan policy meeting which begins on Wednesday and ends on Thursday.
The market is positioning itself for the first Bank of Japan policy meeting under new Governor Haruhiko Kuroda, who is facing pressure from Prime Minister Shinzo Abe to implement easy monetary policy. This is likely to include more quantitative easing in the form of more asset purchases by the central bank.
Yen also weakened against the euro, with EURJPY hitting an intraday high of 120.13 before steadying around 119.60.
Euro was weak against the dollar, after being weighed down by data raising concerns that the euro zone will struggle to emerge from recession. The unemployment rate hit a record high of 12 percent while a series of PMIs across the region showed contraction.
EURUSD touched lows of $1.2812 in the US session, despite a brief rise to $1.2845 after the US data. But risk aversion set back in, as focus turns to the European Central Bank meeting on Thursday.
Sterling made huge losses against the dollar, with GBPUSD tumbling to $1.5105, after being weighed down by dismal UK PMI data.
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