Currency Analyst since 2010

Feb. 10: Asian session

US dollar initially strengthened as investors are trying to guess whether the Fed will continue reductions in monetary easing. The speculation strengthened after the NFP release and before the Fed’s Chairman Janet Yellen speaks to Congress tomorrow. Asian stocks rose with MSCI Asia Pacific Index adding 0.3% after gains in US stocks. Nikkei is up by 1.5%.

USD/JPY opened the new week with a gap up at 102.50, but then eased by about 20 pips. Yen weakened as Japanese current-account deficit widened to record in December.

AUD/USD opened the week with a bearish gap and weakened to $0.8930.Last week the Aussie strengthened significantly as RBA changed the policy outlook from dovish to neutral, but faced resistance at the $0.9000 mark. The coming week will be rich for Australia and China data, so check out the economic calendar. NZD/USD is quietly trading around $0.8275.

EUR/USD opened with a gap down at $1.3615, but the rose to $1.3630, though is trading below Friday’s high at $1.3643. GBP/USD also gapped down below $16400, but then returned above this handle.

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