US Session – Dollar broadly weaker after higher US jobless claims
March 28, 2013 9:20 pm
Market direction was mostly driven by month-end and quarter-end flows. This led to unwinding of the dollar and flows into most G10 currencies like euro and sterling.
Euro was on the heavy side in the early part of the European session after being weighed down by disappointing German employment data. Meanwhile, a separate report later showed German retail sales unexpectedly increased in February, leading euro to reverse losses .
By the time the US session came around, the euro was lifted above $1.28, also helped by dollar selling as traders re-positioned for the month-end. Meanwhile higher-than-expected US jobless claims numbers hurt dollar.
EURUSD rose to a session high of $1.2843 from a European session low of $1.2754, before steadying at around $1.2820. However, ongoing political uncertainty in Italy could likely limit gains in the euro.
The euro crosses were more under pressure, with EURGBP falling to a fresh two-month low at 0.8414, and ended the US session around 0.8430. EURJPY moved under 120.00 before recovering only slightly to 120.67.
Sterling traded higher thanks to a broadly weaker dollar. Also data indicated that UK service output grew at its strongest pace in five months during January, easing concerns about the prospects for a triple-dip recession.
GBPUSD rose to a high of $1.5199, up from a day low of $1.5110.
Yen remained firm today, supported by a combination of risk aversion (hence safe haven demand) as well as a weaker dollar. USDJPY still remained within this week’s narrow range of about 140 pips between 93.52 to 94.95.
Focus will be on the outlook for Bank of Japan monetary policy, with a BOJ meeting next week.
Market direction was mostly driven by month-end and quarter-end flows. This led to unwinding of the dollar and flows into most G10 currencies like euro and sterling.
Euro was on the heavy side in the early part of the European session after being weighed down by disappointing German employment data. Meanwhile, a separate report later showed German retail sales unexpectedly increased in February, leading euro to reverse losses .
By the time the US session came around, the euro was lifted above $1.28, also helped by dollar selling as traders re-positioned for the month-end. Meanwhile higher-than-expected US jobless claims numbers hurt dollar.
EURUSD rose to a session high of $1.2843 from a European session low of $1.2754, before steadying at around $1.2820. However, ongoing political uncertainty in Italy could likely limit gains in the euro.
The euro crosses were more under pressure, with EURGBP falling to a fresh two-month low at 0.8414, and ended the US session around 0.8430. EURJPY moved under 120.00 before recovering only slightly to 120.67.
Sterling traded higher thanks to a broadly weaker dollar. Also data indicated that UK service output grew at its strongest pace in five months during January, easing concerns about the prospects for a triple-dip recession.
GBPUSD rose to a high of $1.5199, up from a day low of $1.5110.
Yen remained firm today, supported by a combination of risk aversion (hence safe haven demand) as well as a weaker dollar. USDJPY still remained within this week’s narrow range of about 140 pips between 93.52 to 94.95.
Focus will be on the outlook for Bank of Japan monetary policy, with a BOJ meeting next week.
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