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Euro Slides From A 4-Year High Against The Japanese Yen - FXNET Daily Market Analysis

Discussion in 'Fundamental Analysis' started by fxnetltd, Nov 25, 2013.

  1. fxnetltd

    fxnetltd New Member

    Mar 7, 2013
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    The US dollar is broadly stronger against its major G10 counterparts on Monday while the yen remains weak as a result of a sell-off due to outflows from safe havens like itself.

    The more risk-on market sentiment today was boosted by a deal reached over the weekend to curtail Iran’s nuclear program. Also keeping the Japanese currency under pressure is expectation for further weakening in the currency due to the Bank of Japan’s aggressive monetary policies, which BOJ Governor reiterated the central banks easy monetary policies to fight deflation.

    The dollar reached a six-month high of 101.90 against the yen in early Asia but eased back slightly on profit taking in the European session to end at 101.80 yen.

    EURUSD traded at 1.3518 after falling from the open and is down over 0.2% by the end of the European session. The euro was knocked down today partly due to ECB policymaker Hansson making remarks on various policy tools that remain available to fight disinflationary pressures, bringing back to the spotlight concerns over negative interest rates.

    The euro peaked at a new four-year high of 137.97 against the yen early in the Europe trade before slipping 0.15% to 137.71.

    Sterling is weaker today, with GBPUSD slipping 0.2% to $1.6165 as focus turns to the outlook for Bank of England policy.

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