Previous Story
USD/JPY maintains gains after strong US home sales
USD/JPY had a quiet Asian session but held onto most gains made from Tuesday’s strong US new home sales which unexpectedly rose to a seven year high. The dollar rallied to a high of 119.97 on the news before pulling back slightly. In Asia today the pair edged up from 119.71 to before easing to 119.56. US core durable goods data later today will be the next key risk event for USD/JPY.
EUR/JPY traded a tight range between 130.60 and 130.88. GBP/JPY rallied modestly from 177.55 to 178.04 before easing back. More dovish BoE expectations look to continue to weigh on this pair. AUD/JPY treaded water between 94.12-38 and just below last night’s 94.66 high with the RBA’s FSR not having any impact.
EUR/USD traded a very similar to the pattern in Asia yesterday. The euro remains bid due to sagging US yields and less negative news out of Europe whether economic or Greece-related. EUR/USD dipped to 1.0900 early before bouncing to 1.0938. EUR/GBP did little in a tight 0.7346-55 range, in a holding pattern below yesterday’s 0.7371 high – the best showing since February 23. EUR/CHF saw a leg up from 1.0464 to 1.0487 in an attempt to make tracks away from last night’s 1.0422 spike low.
GBP/USD clawed back up from an early low of 1.4831 to 1.4877. On Tuesday the pound was hurt after disappointing UK inflation data which saw the CPI rate come in at zero percent in February.
USD/CHF traded between 0.9581-96, consolidating yesterday’s losses to 0.9536, the lowest since February 27.
AUD/USD opened in Asia at 0.7878 and traded a 0.7859-91 range. The growing probability of an April rate cut will likely weigh on the aussie.
NZD/USD closed in New York relatively unchanged on the day at 0.7652. The lower than expected New Zealand trade surplus in February weighed on the kiwi.
The post USD/JPY maintains gains after strong US home sales appeared first on Forex Circles.
