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Currency Analyst since 2010

April 14: Asian session

Asian shares swung between gains and losses gave on Monday after a dismal week on Wall Street and tensions in Ukraine sapped investors' appetite for risk, which helped underpin the safe-haven yen. Indicators suggesting China’s economy expanded in the first quarter at the slowest pace since 2009 have spurred speculation the People’s Bank of China will cut banks’ reserve requirements for the first time in almost 2 years. PBOC Governor Zhou Xiaochuan said officials “don’t have to roll out significant policies” when growth is within normal ranges.

USD/JPY is trading at 101.60 after a dip to 101.40. AUD/USD edged up to $0.9400. NZD/USD is trading in the $0.8680 area after dipping to $0.8620 in Friday.  

EUR/USD opened with a 40-pip gap down at $0.3842 and then rose to $1.3860. Euro slid as the ECB President Mario Draghi said its strength “requires further monetary stimulus.” Bloomberg reports that Draghi’s rhetoric about the euro’s rise was echoed by other European policy makers in weekend meetings of the International Monetary Fund and World Bank, boosting speculation they will consider adding to measures to support growth and spur inflation. GBP/USD opened with a 17-pip gap down at $1.6718 and then closed this gap.

US dollar is supported before a report that may show retail sales climbed last month by the most in 1 1/2 years (12:30 GMT).

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