Daily review- global currencies – 14 June 2013
June 14, 2013 in Forex Analysis
The US dollar is still not in recovery mode against the yen on Friday morning, and is firmly heading to a weekly loss of about 2.5%. The greenback reached its lowest level against the Japanese currency since the start of Japan’s aggressive monetary policy in late 2012.
Investors began reducing their long positions in USD/JPY at the start of the week, when the Bank of Japan disappointed market makers with a lack of new monetary easing measures aimed at further increasing growth and inflation.
The dollar’s new bottom was at 93.93 before gaining some ground and trading a bit higher this morning at 95.00. The greenback managed to get support and stop its fall shortly before the start of the US session yesterday, following a decline in weekly claims for unemployment and growth in retail sales by 0.6%.
The most traded EUR/USD pair reported a fourth day of growth, reaching 1.3375. Similar was the situation with the British pound which hit a new four-month high at 1.5736, as its rise against the dollar since the beginning of June exceeded 3%.
Meanwhile, the Australian dollar was a best performer yesterday, jumping from its intraday low of 0.9436 to 0.9654 against the greenback. The Aussie has been under pressure this week, falling to a three-year low on Tuesday at 0.9333, amid continuous uncertainty surrounding the Fed’s asset-buying programme and a weak Australian economic data at the begging of the week. Thus the sharp chart movements of the Aussie are largely due to the fact that it was oversold over the past few sessions. Upbeat unemployment figures released by the Australian Bureau of Statistics supported the Aussie, sending it to $0.9652 in yesterday’s late session, before it dropped slightly to 0.9589 at the time of writing.
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