7 Apr 2015
USD extends recovery
FXStreet (Córdoba) - The US dollar strengthened broadly during the American session and erased previous days losses versus most competitors as currency continued to shrug off the negative impact of the nonfarm payrolls report.
EUR/USD extended its pullback from yesterday’s high at 1.1035 to a low of 1.0806 during the New York session. GBP/USD failed to sustain gains above 1.4900 and turned negative, sliding to a low of 1.4811.
USD/JPY broke decisively above the 120.00 level and climbed to its highest level since March 20 at 120.44 ahead of the BoJ decision next Asian session.
There are two BoJ meetings this month, but the central bank is expected to keep policy settings on hold. “There is zero expectation of any action this week, though actual risks may be non-zero, and only a small minority calling for an expansion of monetary stimulus at the April 30th meeting”, said the TD Securities team. “Broadly, risks appear to be skewed towards more stimulus at some point but we are unsure about the timing”.
Meanwhile, the Aussie benefitted from RBA decision to keep rate unchanged at 2.25% at today’s meeting, but failed to sustain gains above 0.7700 and retreated during the last hours to settle around 0.7630.
USD/CAD remained steady throughout the day, trading on both sides of 1.2500 as despite broad greenback strength, oil prices helped the loonie to hold ground.
Crude oil rose more than 3% to above $54.00 a barrel ahead of the EIA weekly report on inventories to be published tomorrow.
Aside from BoJ meeting, it will be a quiet Asian session data-wise with releases picking up in Europe. Tomorrow, the FOMC will publish latest meeting minutes which will be key for the dollar.
EUR/USD extended its pullback from yesterday’s high at 1.1035 to a low of 1.0806 during the New York session. GBP/USD failed to sustain gains above 1.4900 and turned negative, sliding to a low of 1.4811.
USD/JPY broke decisively above the 120.00 level and climbed to its highest level since March 20 at 120.44 ahead of the BoJ decision next Asian session.
There are two BoJ meetings this month, but the central bank is expected to keep policy settings on hold. “There is zero expectation of any action this week, though actual risks may be non-zero, and only a small minority calling for an expansion of monetary stimulus at the April 30th meeting”, said the TD Securities team. “Broadly, risks appear to be skewed towards more stimulus at some point but we are unsure about the timing”.
Meanwhile, the Aussie benefitted from RBA decision to keep rate unchanged at 2.25% at today’s meeting, but failed to sustain gains above 0.7700 and retreated during the last hours to settle around 0.7630.
USD/CAD remained steady throughout the day, trading on both sides of 1.2500 as despite broad greenback strength, oil prices helped the loonie to hold ground.
Crude oil rose more than 3% to above $54.00 a barrel ahead of the EIA weekly report on inventories to be published tomorrow.
Aside from BoJ meeting, it will be a quiet Asian session data-wise with releases picking up in Europe. Tomorrow, the FOMC will publish latest meeting minutes which will be key for the dollar.