Kantox currency update: currencies, in range amid mild risk aversion
The major currencies continued trading within previous ranges on Wednesday, with the dollar slightly lower against the yen on the back of investors’ concerns about the challenges of the U.S. Government to push its tax reform bill and with Japanese equity markets retreating from long-term highs.
EUR/USD back above 1.1600. The euro bounced up mildly on Wednesday after hitting 2, ½ month lows at 1.1555 and returned above 1.1600 favoured by dollar weakness on Thursday’s Asian session, approaching the top of the immediate range, at 1.1625. At London market opening times, the EUR/USD is trading at 1.1610.
GBP/USD trading in range below 1.3200. The pound extended its reversal from 1.3180 highs, to hit one-month lows right below 1.3100 on Wednesday, amid growing scepticism about Theresa May’s ability to deliver a good Brexit deal, although the pair has been able to pare losses during Thursday’s Asian session. At London market opening times, the GBP/USD is trading at 1.3150.
USD/JPY: retreats from 114.00 on risk aversion. The dollar extended its pullback from last week highs at 114.75, with the safe haven yen appreciating amid the reports pointing out to Trump administration’s problems to pass their Tax Bill and the ongoing tensions between Washington and Pyongyang, which have reignited during Trump’s Asian tour. At London market opening times, the USD/JPY is trading at 113.50.
In the Calendar Today
Today we have a series of low-interest indicators. At 10:00 GMT the European Central Bank will release their Economic Growth Forecasts, which might have a minor impact on the Euro.
At 13:30 GMT, the U.S. weekly jobless claims will offer some insight into the labour market trends and might have a minor near-term impact on the dollar.
10:00 GMT ECB: Economic growth Forecasts
13:30 GMT US: Weekly Jobless Claims (Nov 3)
Prev: 229K Cons: 231K