7 Jun 2013
Flash: USD broadly sold ahead of NFP - DBS Group
FXstreet.com (Barcelona) - DBS Group analysts note that USD was sold across-the-board yesterday.
EUR/USD hit an intraday high of 1.3304 compared to its 1.2795 low on May 17. USD/JPY revisited its 95.93 low seen on April 16. The mood was certainly different compared to the same week a month ago. Back then,the US dollar was bolstered by a weak yen, better-than-expected US jobs data fueling Fed tapering talks, and surprise rate cuts from the Australian and European central banks.
They note that the “weak yen, higher Nikkei” story ran into trouble when long-term Japanese government bond yields spiked in the final week of May. Further, they see that the Nikkei 225 index subsequently fell some 19% from its peak on May 23. Similarly, they note that Fed tapering talks became counterproductive for US equities on higher US treasury yields. Additional they feel that it did not help that US ISM manufacturing PMI contracted, amidst disappointing US job indicators ahead of today’s US nonfarm payrolls and unemployment rate.
EUR/USD hit an intraday high of 1.3304 compared to its 1.2795 low on May 17. USD/JPY revisited its 95.93 low seen on April 16. The mood was certainly different compared to the same week a month ago. Back then,the US dollar was bolstered by a weak yen, better-than-expected US jobs data fueling Fed tapering talks, and surprise rate cuts from the Australian and European central banks.
They note that the “weak yen, higher Nikkei” story ran into trouble when long-term Japanese government bond yields spiked in the final week of May. Further, they see that the Nikkei 225 index subsequently fell some 19% from its peak on May 23. Similarly, they note that Fed tapering talks became counterproductive for US equities on higher US treasury yields. Additional they feel that it did not help that US ISM manufacturing PMI contracted, amidst disappointing US job indicators ahead of today’s US nonfarm payrolls and unemployment rate.