The trade week in Asia ended much as it began as the US Dollar was once again under pressure as it touched a 14 month low against the Euro. Meanwhile, investor sentiment seemed to be a bit more optimistic after some good earnings and strong equities out of the US. Higher stocks flowed over to Asia and with that move, traders bought into the risk assets, much to the detriment of the struggling dollar and yen.
As mentioned, with the EUR/USD over the psychological 1.5000 level it was free to roam higher today despite rumors of a strong options barrier near the 1.5100 level. The pair never got that high, but did hit near 1.5060 for a session, and 2009 high.
GBP/USD continued higher today as well, still riding the momentum of yesterday's bullish comments out of the BoE. GBP/USD posted a new one month high near 1.6677 on its trip higher, remaining near 1.6650 heading into the London session and some critical UK GDP data due up at 8:30 GMT.
With demand for higher yielding assets in vogue for the day, the Yen hit a two month low against the Euro as EUR/JPY hit just over 137.80 for the day. Not to be left out, GBP/JPY sailed higher by 100 pips to 152.70, and AUD/JPY drove from 84.50 to just over 85.10 on the day. USD/JPY was firmer by almost 50 pips, but once again found itself unable to break through the 91.70 level.
Among other risk currencies, AUD/USD moved higher by half a hundred pips but fell short of the 0.9300 level on the day, while NZD/USD hit 0.7595 after a 40 pip gain. USD/CHF continued its move lower that began late in London yesterday as it dropped to a 15 month low just near 1.0030. The pair gained back 30 pips as the session wore down.
Ahead in London, the data will be dominated by German Ifo and UK GDP data. It would be wise to note that this Sunday brings the daylight savings time shift for Europe. Have a nice weekend.
