3 Dec 2013
Session Recap: Dollar under pressure in low volume market; Buoyant Yen
FXstreet.com (San Francisco) - FXstreet.com (San Francisco) - Not a good day for greenback despite stocks fell strongly all over the world, as the dollar also gave up strongly, even against weaker Aussie. The overall winner of the day however has been the yen that appreciated strongly after testing 140.00, first time since mid 2008, against the EUR from where the pair eased strongly shedding over 100 pips. Stocks slide have had little to do with QE tapering this time, and it seems more profit taking ahead of key macro events and year end than anything else.
With little fundamental data to give directional tips, investors has chosen to sell the US currency ahead of key fundamental data later this week: the ECB will have its monthly meeting next Thursday, while US employment figures on Friday will likely set the tone for the whole month. At this point, things are far from suggesting a strong change in economy, so there are little chances for shocking surprises; nevertheless, market may enter in cautious mode this Wednesday.
The euro and the Pound are also quite strong, with both majors trading nearby key resistances against the greenback: the EUR/USD stands a few pips below 1.3625, 61.8% retracement of its latest daily fall from 1.3831, while the GBP/USD stands a few pips below the freshly accomplished year high of 1.6441.
According to FXstreet.com chief analyst Valeria Bednarik, advances beyond those levels should anticipate further gains, albeit chances of a rally before the mentioned news are quite limited. She also notes Pound has been outperforming over other high yielders, as UK economic stance is by far the stronger against major economies, which suggest better chances are now there.
The USD/JPY declined for first time in 5 sessions as the cross joined the Yen strength with the US Dollar to Yen exchange rate falling from 103.40 to find support at 102.00 and closing at 102.40.
Main headlines in the American session:
US: ISM New York Index soars to 69.5 in November
US: IBD/TIPP Economic Optimism rises to 43.1 in December
Japnese stimulus package details due Thursday
Fed’s Williams: I would be disappointed if QE3 didn’t end in 2014 – RTRS
Wall Street declines on low volume trading
With little fundamental data to give directional tips, investors has chosen to sell the US currency ahead of key fundamental data later this week: the ECB will have its monthly meeting next Thursday, while US employment figures on Friday will likely set the tone for the whole month. At this point, things are far from suggesting a strong change in economy, so there are little chances for shocking surprises; nevertheless, market may enter in cautious mode this Wednesday.
The euro and the Pound are also quite strong, with both majors trading nearby key resistances against the greenback: the EUR/USD stands a few pips below 1.3625, 61.8% retracement of its latest daily fall from 1.3831, while the GBP/USD stands a few pips below the freshly accomplished year high of 1.6441.
According to FXstreet.com chief analyst Valeria Bednarik, advances beyond those levels should anticipate further gains, albeit chances of a rally before the mentioned news are quite limited. She also notes Pound has been outperforming over other high yielders, as UK economic stance is by far the stronger against major economies, which suggest better chances are now there.
The USD/JPY declined for first time in 5 sessions as the cross joined the Yen strength with the US Dollar to Yen exchange rate falling from 103.40 to find support at 102.00 and closing at 102.40.
Main headlines in the American session:
US: ISM New York Index soars to 69.5 in November
US: IBD/TIPP Economic Optimism rises to 43.1 in December
Japnese stimulus package details due Thursday
Fed’s Williams: I would be disappointed if QE3 didn’t end in 2014 – RTRS
Wall Street declines on low volume trading