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17 Jan 2013
Forex Flash: Yen up, Euro unsteady as Aussie stumbles – OCBC Bank
FXstreet.com (Barcelona) - OCBC analyst Emmanuel Ng has taken a look at the major market themes overnight and what may lie ahead.
Starting with Japan, he notes that mixed official rhetoric from the nation flowed thick and fast on Wednesday and JPY continued to claw higher against majors after recent losses. He notes however, that USD/JPY recovered partially by late NY with the pair back above 88.50 on early Thursday.
Meanwhile, he notes that EUR/USD remained somewhat unsteady but found its footing after the ECB’s Nowotny noted that the EUR was “not a matter of major concern” – a stark contrast from the EU’s Juncker the previous day. On the US front, Ng comments that CPI numbers were muted with the Beige Book report largely neutral. Elsewhere, the CAD and the GBP were also slightly under the weather on the back of global growth concerns.
Finally, Ng writes, “this morning sees that AUD/USD has stumbled slightly on the disappointing December labour market numbers and this may dull sentiment somewhat. However, expect the JPY to continue to dominate investors’ radar screens in the interim amid still positive risk appetite levels although we increasingly find a market looking increasingly less decisive towards the other majors in the interim.”
Starting with Japan, he notes that mixed official rhetoric from the nation flowed thick and fast on Wednesday and JPY continued to claw higher against majors after recent losses. He notes however, that USD/JPY recovered partially by late NY with the pair back above 88.50 on early Thursday.
Meanwhile, he notes that EUR/USD remained somewhat unsteady but found its footing after the ECB’s Nowotny noted that the EUR was “not a matter of major concern” – a stark contrast from the EU’s Juncker the previous day. On the US front, Ng comments that CPI numbers were muted with the Beige Book report largely neutral. Elsewhere, the CAD and the GBP were also slightly under the weather on the back of global growth concerns.
Finally, Ng writes, “this morning sees that AUD/USD has stumbled slightly on the disappointing December labour market numbers and this may dull sentiment somewhat. However, expect the JPY to continue to dominate investors’ radar screens in the interim amid still positive risk appetite levels although we increasingly find a market looking increasingly less decisive towards the other majors in the interim.”