Market News

Yesterday’s disappointing outcome on German inflation data sent the Euro tumbling broadly and has led to speculation that today’s release of the Euro area figures are likely to also come with a downside surprise.

Upbeat economic data from the Eurozone area left investors speculating that the European Central Bank might reconsider its recent rhetoric and hold tight on rhetoric about additional stimulus.

European equity futures rose on Monday while Asian stocks fell, pushing the regional index to an almost two-week low.

With a week ahead full of key economic data, U.S. Dollar trade was generally slow with investors wary of taking aggressive positions.

Mounting tension in Ukraine has sent FX players flooding back to the safe haven Japanese Yen.

The New Zealand Dollar soared broadly during the Asian trading session following comments made by officials of the Reserve Bank of New Zealand which left no room for uncertainty that the central bank intends to hike interest rates further in the near future in an effort to stave off inflationary pressures.

As reported at 1:20 p.m. (JST) in Tokyo, the AUD/USD dropped 0.9% to trade at $0.9286, moving well off the 5-month peak struck earlier this month when the pair hit $0.9461.

The U.S. Dollar Index remained close to a 2½ week peak versus its major rivals in spite of a subdued trading session in the overnight hours following the closure of a number of financial markets for the Easter weekend.

In light Asian trading as a result of the holiday weekend, the U.S. Dollar firmed and steadied on Monday though additional gains are likely limited as a situation in Ukraine is keeping FX traders on the edge.

The safe haven Yen edged lowered and struck a fresh 10-day trough versus the greenback following the release of upbeat economic data from the U.S. and on growing hopes that a diplomatic solution will be found for the Ukraine’s geopolitical problems.

Get all the information you need for the Easter trading schedule here.

The Japanese Yen remained close to a 1-week trough versus its U.S. counterpart after easing overnight in the wake of a global equities rally which reduced overall appetite for safe haven assets.

Earlier in the Asian trading session, jittery investors had moved well away from commodity-linked currencies as investors awaited the release of several data pieces out of China which would hopefully provide additional clues as to the Chinese economic recovery.

The release yesterday of unexpectedly improved U.S. retail sales figures helped to push the U.S.

The Euro remains on the defensive as the trading week opened in Asia after the European Central Bank once again repeated its commitment to ensuring that deflation doesn’t get a foothold by remaining ready to provide easing as and when needed.