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Currency Analyst since 2010

June 13: Asian session

EUR/USD renewed highs rising to $1.3369. Yesterday euro gained on positive data including CPI numbers and better than expected industrial production. Today the ECB will release its monthly bulletin (08:00 GMT). Yet, there are problems on the European background. Protests in Greece are intensifying, while German Constitutional Court is questioning the ECB’s ability to use the OMT and 10-year sovereign bond yields are on the rise again.

GBP/USD is consolidating just below $1.5700. UK released yesterday better-than expected unemployment data. Today on the agenda there’s only a speech from the Bank of England’s Tucker (12:15 GMT). USD/CAD is trying to rise above 1.0220. USD/CHF slipped to 0.9170.

USD/JPY dropped from 96.10 and hit a fresh 3-months low of 94.18 following the yesterday’s long-legged daily “doji”. Bank of Japan’s head Kuroda told PM Abe that Japan’s real economy is recovering steadily. The regulator offered to buy 200B yen debt with maturity 10+ years and to buy 450B yen debt with maturity 5 to 10 years.

AUD/USD jumped above $0.9500 on the employment report release (key figures were better than expected) to a high of $0.9520, but plummeted to $0.9430 quickly after that. As of writing, Aussie recovered to $0.9465. Australian employment rose by 11K in May (forecast: -9.8K, prev.: 45.0K). Unemployment rate slipped to 5.5% (previous and forecast: 5.6%). NZD/USD dropped to $0.7895. As expected, RBNZ left the benchmark cash rate unchanged at 2.5%. RBNZ’s governor Wheeler said the NZD remains overvalued and the regulator is ready to intervene. Chinese markets reopened today after three days of holidays.

The focus today will be on US retail sales data due at 12:30 GMT. The market players will be looking for hints about when the Fed might scale back its bond buying.

 

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