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Dollar weak after dovish FOMC minutes
USD/JPY remained weak in holiday-thinned Asia after tumbling on dovish FOMC minutes late on Wednesday. The pair was down from 118.82 to 118.42 as the USD is under pressure after the Fed pared-down expectations of a June Fed rate hike. US yields fell back a bit more with 10-year treasury yields at 2.078% early in the Asian session after closing in New York at 2.082% and down from 2.152% the day before. The Nikkei rose despite the stronger JPY and this also kept the USD/JPY pinned down.
EUR/JPY bounced from 135.09 overnight, 50% retracement of 133.96-135.09, to 135.46 in Asia. The underlying bias remains bearish with the “new” EU-Greece proposal not impressing the markets. Greece is expected to ask for a 6-month loan extension today.
EUR/USD opened in Asia at 1.1397 after getting a boost last night on dovish FOMC minutes. It consolidated between 1.1400-10 initially before legging up to 1.1424 on broad USD weakness and topping yesterday’s 1.1416 high. A more dovish Fed and expectations of an 11th hour deal between the EU and Greece could see EUR/USD correct back above 1.1500.
GBP/USD remained better bid in Asia as well, trading 1.5435-57 and below last night’s outlier to 1.5480. EUR/GBP was slightly better bid between 0.7383-91 after last night’s push down to 0.7348.
USD/CHF traded soggy between 0.9407-24. EUR/CHF saw some more upside, up modestly from 1.0734 to 1.0749.
AUD/USD opened in Asia at 0.7810 and quietly traded up from 0.7807 to 0.7843 before falling back hard later to 0.7787 in holiday-thinned trading in the region.
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