Data Boosts Yen

Fundamental Analysis EUR "We expect euro-region inflation to normalize in 2013" - Michael Schubert, an economist at Commerzbank AG Inflation in the seventeen nation bloc eased to 2.6 per cent in March from 2.7 per cent the previous month, said the European Union’s statistics office in Luxembourg on Wednesday. USD "Uncertainty about Greece and the effects a potential exit out of the euro would have on Europe, the global economy and the financial system in general is driving investors out of stocks into safe havens" - Markus Huber, head of German sales trading at ETX Capital The Standard & Poor's 500 lost 0.44%, or 5.86 points, to 1,324.80. The Dow Jones Industrial Average declined by 0.26%, or 33.45 points, to 12,598.55. GBP Unemployment figures are a "welcome step in the right ...

The euro continued to tumble throughout yesterday's trading session as investors grew more concerned regarding the impact of a possible new Greek election next month. The EUR/USD fell close to 70 pips during European trading, reaching as low as 1.2829. Today, traders will want to pay attention to several potentially significant market events. At 9:00 GMT, the German ZEW Economic Sentiment figure may be able to help the euro recover some of its recent losses if it comes in above analyst forecasts. In addition, the US Core CPI, Core Retail Sales and Retail Sales figures, all scheduled for 12:30 GMT, could lead to market volatility for USD pairs. Should any of the news come in above expectations, the greenback could move up against the JPY. Economic News USD - US Retail Sales Data Set to ...

Sunrise Market Commentary - Fixed Income: new contract highs - London-traders returned and the market seemed to react with a lag to this weekend's election results. In a risk off session, both the German Bund Future and the US Note Future set new contract highs, respectively at 142.62 and 133-04. - Currencies EUR/USD testing key support - On Tuesday, sentiment on the euro remained fragile even as there was little news from the political scene in France or Greece. EUR/USD is again testing the key 1.2974/55 support area. A break below this level would be highly significant from a technical point of view. The Sunrise Headlines - US Equities dropped sharply lower yesterday, but reversed most of their losses in the final hours of trading. The S&P ended the session 0.43% lower. ...

(Reuters) - The euro retreated from a three-week high against the dollar on Thursday as weak sentiment data increased concerns about the economic outlook for the euro zone, though losses were limited by the Federal Reserve pledging to be open on more stimulus. Following a two-day policy meeting that finished on Wednesday Federal Reserve Chairman Ben Bernanke said policymakers were ready to launch another round of bond buying if the U.S. economy weakened. The statement weighed broadly on the dollar, pushing it to a three-week low against the euro of $1.3263, before the common currency slipped on data showing euro zone economic sentiment fell more than expected in April. U.S. initial weekly jobless claims showing a weaker pace of healing in the labor market sent the dollar to a one-week ...

(Reuters) - The dollar fell to a three-week low against a basket of major currencies on Thursday after the Federal Reserve said it was ready to launch another round of bond buying if the U.S. economy weakens. The dollar's weakness boosted the Canadian dollar and pushed the British pound to a seven month high against the U.S. currency, as the central banks of Canada and Britian, in contrast to the Fed, are seen moving away from further stimulus. A tightening of peripheral euro zone spreads lifted the euro, but with debt problems still brewing large and the threat of a recession and political instability hanging over the euro zone, the common currency was unlikely to break above its recent highs, analysts said. The dollar index .DXY was at 78.849, having fallen as low as 78.823 its lowest ...

The euro received a boost following the most recent German Ifo Business Climate figure to close out last week's trading session. The better than expected news resulted in the EUR/USD shooting up close to 100 pips to finish out the day at 1.3219. Turning to this week, traders can expect market volatility as the US is scheduled to release a batch of potentially significant indicators, including Tuesday's CB Consumer Confidence figure and Wednesday's FOMC Economic Projections. Today, traders will want to pay attention to the German Flash Services and Flash Manufacturing PMI's. Better than expected results could help the euro extend its current trend. Economic News USD - Dollar Drops vs. Main Currency Rivals The dollar reported losses against virtually all of its main currency rivals on ...

(Reuters) - Global stocks surged on Tuesday, as forecast-beating results by some major U.S. companies spurred sentiment and a Spanish bond auction drew stronger demand than expected, easing worries about the European debt crisis. Prices of U.S. Treasuries fell on the renewed appetite for stocks and as the demand for Spain's short-term debt tempered safe-haven demand. The dollar and the yen, both low-yielding currencies, faltered as the renewed confidence drove investors to seek higher returns in other riskier currencies. On Wall Street shares snapped a two-day decline and in Europe shares rallied 2 percent after quarterly results from investment bank Goldman Sachs Group Inc (GS.N) and beverage giant Coca-Cola Co (KO.N) topped expectations, lifting hopes for the rest of the earnings ...

The euro rose to a one-week high against the US dollar during yesterday's trading session, as positive international fundamental data led to an increase in risk taking. Analysts are warning that overall market sentiment is still bearish toward the euro, and any gains made by the currency may be short lived. Today, traders will want to pay attention to data out of the US, including the Core CPI and Prelim UoM Consumer Sentiment figures. With both indicators forecasted to come in above last month's, the greenback could see gains to close out the week. Economic News USD - Dollar Continues to Fall vs. Riskier Currencies The US dollar extended its recent bearish trend during yesterday's trading session, as positive data out of Australia and China led to an increase in risk taking. The EUR/ ...

Japanese yen is pulling back in forex trading today, heading lower as risk appetite improves. Yen is lower against other majors today as optimism about the global economy, as well as improvement in Europe, boosts high beta currencies. Right now, Forex traders seem to favor high beta currencies with higher yields right now, now that things appear to be looking up for many economies. German Ifo data surprised by indicating that confidence is growing. This bodes well for the eurozone, since Germany — as the largest economy — sets the tone for the rest of the 17-nation currency region. Additionally, the news that US yields are likely to remain low has spurred an appetite for higher yielding currencies. The Japanese yen is lower as a result, dropping as news from around the world supports ...