Currency Analyst since 2010

August 12: Asian session

The greenback strengthened before US data due tomorrow may show retail sales rose for a fourth month in a row, adding to the case for the Fed to reduce monetary stimulus.

EUR/USD opened with a gap down at $1.3318, then rose to $1.3343 before returning lower, to $1.3325. EUR/JPY rose from a 6-week low below 128.00 before reports due on Tuesday and Wednesday that may show industrial production and GDP in the euro area rebounded. GBP/USD also opened with a gap down at $1.5483, the tested $1.5520 before returning below $1.5500. 

USD/JPY strengthened to 96.60 after a dip to 95.90. Japan’s top companies reporting showed they doubled earnings in Q2 from a year earlier, exceeding already high forecasts and generating support for the economic recovery. Tonight Japan is scheduled to release core machinery orders data (forecast – negative) and the Bank of Japan’s policy meeting minutes. USD/CHF edged higher to 0.9240.

AUD/USD opened the week at $0.9190, tried to strengthen, but was capped at $0.9225. NZD/USD opened the week with a small bearish gap. The growth attempt of the kiwi was contained by the Friday’s high of $0.8055. USD/CAD is trading below 1.0300.


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