Euro holds onto post-election gains

USD/JPY was initially buoyed in early Asian trading, helped by a boost to the Nikkei stock exchange. The pair moved up to 118.66 before easing back to 118.13. EUR/JPY fell back after rallying to 133.72 yesterday. It reached an Asian session low to 132.80. The two-day FOMC meeting today is keeping markets cautious.

EUR/USD opened in Asia at 1.1237 after broad euro strength yesterday due to market relief that Greece’s election is over without much disruption. EUR/CHF surged 2.5% from a spike low of 0.9788 in Asia to 1.0170. The Syriza election victory in Greece was taken in stride with most eyeing a deal on debt between the new government and EU to avoid another crisis. Asia saw EUR/USD consolidate between 1.1230-58.

GBP/USD dipped to 1.5079 early in Asia before bouncing to 1.5106 in calm trading. The key risk to the pound will be today’s preliminary UK GDP data. EUR/GBP looked heavy between 0.7442-57.

USD/CHF consolidated between 0.9008-32 in Asia.
AUD/USD opened in Asia at 0.7924 and eased to 0.7906 early before bouncing later to 0.7945. Key support below remains at 0.7850. The neutral NAB business survey results had little impact but sentiment remains bearish. Tomorrow’s CPI comes into focus next.

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