USD lifted by hawkish Carney

Posted On 17 Jul 2015

Tag: AUDUSD, EURJPY, EURUSD, GBPUSD, NZDUSD, USDJPY

USD/JPY rose to close to a one-month high of 124.22 in Asia today but was down about 0.1 percent on the day. It is still on track to gain more than 1 percent for the week as the market shifted its focus to an eventual hike in U.S. interest rates. The dollar index was up about 1.5 percent in a week in which Federal Reserve Chair Janet Yellen reiterated that the U.S. central bank would likely lift interest rates later in the year. Helping support the dollar was US data yesterday which showed initial jobless claims fell more than expected last week. US CPI data will come into focus later today.

EUR/USD and EUR/JPY saw bounces on pre-weekend position adjustments. EUR/USD rose from 1.0873 early to 1.0904 and EUR/JPY from 135.09 to 135.26, moving away from yesterday’s 134.76 low. Greece concerns are fading after news of a bridge loan for Greece and also an increase to the ELA for Greek banks.

GBP/USD last stood at 1.5625, up about 0.2 percent on the day and moving back toward a two-week peak of 1.5676 scaled on Wednesday. Sterling rose to a 7-1/2 year high on the euro, which fell to 69.58 pence on Thursday and was last up about 0.1 percent at 69.68 pence. Helping lift the pound was a hawkish Bank of England Governor Mark Carney this week who mentioned that the time for a rate hike is moving closer.

Commodity currencies continue to remain under pressure.

AUD/USD last stood at $0.7412, after hitting as low as $0.7350, a low not seen since mid-2009.

NZD/USD dipped below 65 U.S. cents for the first time since July 2009 on Thursday, before steadying at 0.6537.

The Canadian dollar last traded at C$1.2954 per USD, not far from a low of C$1.2974 set earlier in the session. The Bank of Canada rate cut earlier this week pressured the loonie.

The post USD/JPY rises above 124.00, GBP/USD lifted by hawkish Carney appeared first on Forex Circles.

Source:: USD/JPY rises above 124.00, GBP/USD lifted by hawkish Carney

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