Market News

The Euro eased away from just shy of a 2-month peak versus the U.S. Dollar as FX players await the monetary policy decision of the European Central Bank expected later today.

The New Zealand Dollar was broadly lower during Wednesday’s Asian trading session after the head of the Reserve Bank of New Zealand cautioned FX traders that it might be compelled to intervene in the too strong currency given worsening fundamentals.

In subdued trading as a result of holidays in the U.K. and Japan, the U.S. Dollar remained essentially and broadly flat even in spite of recent improved economic data.

The Japanese Yen struck a 2-week peak versus its main rival, the U.S Dollar, as appetite for risk skidded following the release of Chinese economic data which once again showed that manufacturing activity fell for the fourth consecutive month in China, the second largest economy on the globe.

Ahead of today’s release of key labor data for the U.S., the greenback struggled broadly and the U.S. Dollar Index remained close to a 3-week low as FX traders keep to the sidelines.

The U.S. Dollar fell broadly and hard after yesterday’s release of preliminary growth data indicated that the American economy nearly flat-lined in the first quarter of this year.

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.