US Session – Euro extends gains while pound rallies ahead of BOE
May 8, 2013 8:27 pm
The euro rallied on the better-than-expected German industrial production data, which comes just a day after strong German factory orders data. Industrial output recorded the biggest jump in 12 months and rose 1.2 percent in March despite expectations for a 0.1 percent decline.
EURUSD extended gains in the US session and hit a high of $1.3193, currently at $1.3155, up 0.5 percent on the day. Euro however remains vulnerable amid expectations over another rate cut by the European Central Bank after President Mario Draghi said Monday the ECB was ready to act if needed.
Sterling gained the most in almost two weeks against the dollar to a high of $1.5590 ahead of the Bank of England rate decision on Thursday. Investors do not expect the BoE to change monetary policy and the 375 billion pound asset purchase program is expected to remain unchanged.
Meanwhile, strong UK housing data and positive German data helped support the pound as investors shrugged off a report that showed UK retail sales dropped last month.
USDJPY has been trading a tight range in the past two days, though the dollar edged down slightly lower against the yen today to as low as 98.57 and ending the session around 98.85.
The Australian dollar’s sharp drop from Tuesday was halted today as better-than-expected Chinese trade data helped support the aussie. Yesterday the currency fell following a rate cut by the Reserve Bank of Australia, touching lows of $1.0154.
Gold climbed to a high of $1476.47, recovering the prior day’s losses as a result of a broadly weak US dollar and strong demand in Asia. Gold and USD tend to have an inverse price relationship.
The euro rallied on the better-than-expected German industrial production data, which comes just a day after strong German factory orders data. Industrial output recorded the biggest jump in 12 months and rose 1.2 percent in March despite expectations for a 0.1 percent decline.
EURUSD extended gains in the US session and hit a high of $1.3193, currently at $1.3155, up 0.5 percent on the day.
Euro however remains vulnerable amid expectations over another rate cut by the European Central Bank after President Mario Draghi said Monday the ECB was ready to act if needed.
Sterling gained the most in almost two weeks against the dollar to a high of $1.5590 ahead of the Bank of England rate decision on Thursday. Investors do not expect the BoE to change monetary policy and the 375 billion pound asset purchase program is expected to remain unchanged.
Meanwhile, strong UK housing data and positive German data helped support the pound as investors shrugged off a report that showed UK retail sales dropped last month.
USDJPY has been trading a tight range in the past two days, though the dollar edged down slightly lower against the yen today to as low as 98.57 and ending the session around 98.85.
The Australian dollar’s sharp drop from Tuesday was halted today as better-than-expected Chinese trade data helped support the aussie. Yesterday the currency fell following a rate cut by the Reserve Bank of Australia, touching lows of $1.0154.
Gold climbed to a high of $1476.47, recovering the prior day’s losses as a result of a broadly weak US dollar and strong demand in Asia. Gold and USD tend to have an inverse price relationship.
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