Currency Analyst since 2010

Oct. 15: Asian session

USD weakened today against higher-yielding currencies as equity markets signaled optimism about US Senate discussions on raising the nation’s debt limit to avert a default, curbing demand for refuge assets such as JPY. USD/JPY reached the highest level since Oct. 1 at 98.70. USD/CHF is trading in the 0.9100 area. Senate Democratic and Republican leaders said yesterday they made significant progress toward an accord. The emerging agreement would suspend the debt limit through Feb. 7, 2014, fund the government through Jan. 15 and require a House-Senate budget conference by Dec. 13, reports Bloomberg referring to an anonym source in Senate. A deal could be announced today.

EUR/USD recovered to $1.3570 after a dip to $1.3550 earlier in the session. Yesterday the pair has retested the $1.3600 mark, but failed to fix on these highs. Euro zone will release ZEW economic indices at 9:00 GMT. ECOFIN meeting starts in Brussels today. GBP/USD was rejected from the levels just below $1.6000. Britain will release CPI at 08:30 GMT.

AUD/USD rose to $0.9540 (highest since June) following the tonight’s release of the RBA October minutes. There wasn’t much new in the release, but policy outlook has become more neutral. Further rate cuts still remain an option for the bank, but RBA underlined that policy would directly depend on dataflow. NZD/USD has touched $0.8405. Kiwi saw a small dip tonight as New Zealand Treasury said in their 2013 annual report that the currency exchange rate remained elevated. USD/CAD is falling for the third day and returned to the previous resistance (and now support) around 1.0330.

Scroll to top