The yen spiked half a big figure lower after a strong earthquake hit Japan, and risk currencies in genera fell. EURUSD traded 1.3775-1.3832, USDJPY 82.78-83.30. Continue reading →

The dollar made significant gains during the Asia session after February trade data out of China disappointed consensus expectations. Although Lunar New Year celebrations are likely the cause of the unexpected deficit, investors were in no mood to take chances, and the US dollar strengthened against all its G10 peers. Earlier the NZD experienced some weakness of its own when the RBNZ cut the policy rate by 50bp (only a 25bp cut had been expected by consensus). Continue reading →

The dollar continued to strengthen gradually during the Asia session. The absence of news, combined with the prevalence of short dollar positions, suggests that an unwind of overstretched positions was likely at work over the past 24 hours. EURUSD traded between 1.3873 and 1.3924 and USDJPY between 82.61 and 82.94. Continue reading →

FX markets were largely range-bound until the end of the Asia session, although the NZD recovered some lost ground against the dollar, and the CHF sold off against both the euro and the dollar as Europe walked in. EURUSD traded 1.3956-1.3989, USDJPY 82.16-82.38. Continue reading →

FX market activity was relatively subdued during the Asia session as investors sought a new post-payrolls theme. Despite the thin trade, the dollar managed to claw back some ground lost on Friday. EURUSD traded 1.3962-1.3999, USDJPY 82.15-82.39. Continue reading →

The absence of news flow and economic data releases made for a quiet Asia session. The dollar stabilized against the euro after yesterday’s heavy losses in the wake of ECB President Trichet’s hawkish commentary. EURUSD traded 1.3930-1.3972, USDJPY 81.73-82.52. Continue reading →

FX markets remained tightly range-bound for most of the Asia session, as investors direct their attention to the upcoming ECB press conference. Headlines suggesting that a peace plan for Libya is being discussed led to a spurt of risk-seeking, but it was shallow and brief. EURUSD traded 1.3847-1.3876, USDJPY 81.65-81.93. Continue reading →

The dollar continued to recover lost ground on the back of weaker risk appetite. Ratings agency comments about Greece and Portugal did not help. Nor did calls for a cut to the OCR by New Zealand Prime Minister Key. Weaker-than-expected Australian Q4 GDP also contributed to the sombre mood. EURUSD traded 1.3744-1.3811, USDJPY 81.82-81.98. Gold and oil remain elevated… Continue reading →

The dollar advanced against both the yen and the Swiss franc during the Asia session, despite the lack of news flow. AUDUSD came under modest selling pressure after the RBA policy statement suggested no urgency in tightening further. EURUSD traded 1.3781-1.3830, USDJPY 81.74-82.24. Continue reading →

FX price action showed little conviction during the Asia session, an understandable reaction to the general lack of news flow. EURUSD traded 1.3712-1.3767 and USDJPY traded 81.62-81.76. Our team of analysts now expects the RBNZ to cut the OCR by 50bp at the upcoming policy meeting, in response to last week’s tragic earthquake. Brent crude pushed even higher on supply concerns, and is trading at $113.88/bbl at the time of writing; gold is hovering at $1413.95/oz. Continue reading →

The dollar continued to surrender ground during the Asia session, and USDCHF set a new all-time low. EURUSD traded 1.3787-1.3838, USDJPY traded 81.68- 82.07. The euro and sterling remain supported by the prospect of rate hikes to tame inflationary pressures, especially as oil prices stay firm due to tensions across the Middle East and North Africa. Continue reading →