Yen slips further as risk appetite rises; oil close to 4-month highs

Posted On 13 Apr 2016

The safe-haven yen continues to slip against the US dollar and moved off seventeen-month highs as risk appetite picked up in the markets. China’s trade data came in significantly higher than expected in March, which helped to boost the risk sentiment.

USDJPY climbed as high as 108.905 yen, having climbed from a near eighteen-month low around 107.63 set on Monday.
EURJPY rose to 123.85 yen, moving away from a three-year low of 122.085 set last month.

Meanwhile, against the dollar, the euro eased 0.2 percent to $1.1369 after turning around from a six-month peak of $1.1465. That helped the dollar index climb back above 94.000, from a near eight-month low of 93.627.

Commodity currencies rallied on higher oil prices, helping the Canadian and Australian dollars to rise.

USDCAD traded at $1.2760, not far from a nine-month high of $1.2750 reached overnight. Immediate risk for the loonie will be the Bank of Canada later today. The BOC is widely expected to keep interest rates unchanged at 0.5 percent. After a run of better-than-expected domestic data at the start of the year, the BOC is also likely to raise its growth forecasts for Canada.

AUDUSD gained 0.4 percent at $0.7711, nearing its 2016 peak of $0.7723 set a few weeks ago. Meanwhile, upbeat traded data out of China today helped support the aussie as China is a major trading partner for Australia. Chinese exports in March rose a much stronger-than-expected 11.5 percent, the first increase since June and largest gain since February 2015.

Oil prices rose to four-month highs overnight on hopes of a deal in Doha on Sunday between OPEC members and Russia. Brent crude, the international benchmark, and West Texas Intermediate, the US marker, closed more than 4 per cent higher on Tuesday. In Asian trading today, Brent was two-thirds of a percentage point lower at $44.39 a barrel and WTI was down 0.9 per cent at $41.78.

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