Currency markets were quiet in the US Session as they were in previous sessions today since most markets were closed for the Good Friday holiday. Major G10 currencies just traded in tight ranges today. There were no key economic data.
The only data released during the session was US personal spending which rose 0.7 percent in February and consumer sentiment which improved in March to the highest level since November. But there was little reaction in currencies.
The ICE dollar index which measures the dollar against a basket of major currencies was little changed at 82.998 on Friday, compared to 82.975 in late New York trading on Thursday.
The euro had a turbulent week against the dollar and traded near $1.2820 today. Concerns about the euro zone debt crisis weighed on the single currency this week. Now the focus shifts to Italy where the country has been unable to form a government, thus far. This poses downside risks to the euro.The European Central Bank policy meeting next week will also be closely watched.
EURJPY moved into a very tight range between 120.29 – 120.93 since Thursday, after moving off a low off a one-month low of 119.73.
USDJPY traded a narrow range in the last two days between 93.86 and 94.37 yen. The dollar may have slipped from a 3-1/2 year high of 96.69 yen hit on March 12 but yen headed for its longest string of monthly losses in more than a decade.
The reason is speculation that the Bank of Japan will adopt aggressive monetary easing measures in a bid to fight deflation in the country. These measures are expected to have a weakening effect on the yen.
Currency markets were quiet in the US Session as they were in previous sessions today since most markets were closed for the Good Friday holiday. Major G10 currencies just traded in tight ranges today. There were no key economic data.
The only data released during the session was US personal spending which rose 0.7 percent in February and consumer sentiment which improved in March to the highest level since November. But there was little reaction in currencies.
The ICE dollar index which measures the dollar against a basket of major currencies was little changed at 82.998 on Friday, compared to 82.975 in late New York trading on Thursday.
The euro had a turbulent week against the dollar and traded near $1.2820 today. Concerns about the euro zone debt crisis weighed on the single currency this week. Now the focus shifts to Italy where the country has been unable to form a government, thus far. This poses downside risks to the euro.The European Central Bank policy meeting next week will also be closely watched.
EURJPY moved into a very tight range between 120.29 – 120.93 since Thursday, after moving off a low off a one-month low of 119.73.
USDJPY traded a narrow range in the last two days between 93.86 and 94.37 yen. The dollar may have slipped from a 3-1/2 year high of 96.69 yen hit on March 12 but yen headed for its longest string of monthly losses in more than a decade.
The reason is speculation that the Bank of Japan will adopt aggressive monetary easing measures in a bid to fight deflation in the country. These measures are expected to have a weakening effect on the yen.
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