The Yen gained back some ground today in Asia as equity markets looked lackluster in both the US and Japan, and risk appetite took a backseat to safety. USD/ JPY made early highs over 100.40 on Japanese bids but lost steam after the Tokyo fix, plummeting to just above 99.60.
EUR/USD followed the same path, hitting an early high near 134.30 and then falling to near 132.60 with the Nikkei in the red.
It is no secret that equities have been a primary driver of the global currency markets. Much of the moves in EUR/USD were exemplified by thinned liquidly due to the four day weekend there, and stops pulled the pair from 1.3381 to just over 1.3300 and back to 1.3370 in today's price action. The British Pound made a late run to break 1.4900 and reach 1.4918, but the move was not sustained and the GBP/USD ended the session closer to 1.48800. On the other side of the globe in Singapore the Central Bank there eased their monetary policy by devaluing their dollar, thus moving USD/SGD from 1.5147 to 1.4952 in one momentous swoop. It was a good day to be short USD/SGD.....There is absolutely no data later in the European session.
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