Forex Asia Review – Euro remains propped up above $1.31

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Euro remained steady against the dollar after choppy trading on Thursday, hovering above $1.31. The single currency bounced after reports of a possible boost to the International Monetary Fund’s firepower.  This helped ease market concerns on the euro zone debt  crisis as extra funds would help shield member economies from the debt crisis in Europe. EURUSD opened in Asia at 1.3136 and traded between 1.3127-1.3162. German data are in focus in the early European session open.

 

GBPUSD continued to consolidate near a five-month high after gaining on Wednesday on speculation of less likelihood of more quantitative easing by the Bank of England. UK retail sales data are in focus later today. Cable traded between 1.6037-1.6066.

 

USDJPY remained propped up mainly due to a weaker yen. The Japanese currency has been under pressure lately on speculation that the Bank of Japan will step up easing measures at its policy meeting on April 27. USDJPY hovered at 81.48-81.69. Further gains in the dollar were capped as there was some concerns following disappointing US data on worse than expected jobless claims data yesterday.

 

EURJPY managed to edge up slightly higher to 107.38, tracking the rise in EURUSD with the help of prospects of a boost to IMF firepower.

 

AUDUSD was not able to recover any losses made yesterday . The aussie is down over 1 percent on the week, declining since Tuesday to reach a low of 1.0308 this morning. The commodity-linked Australian has been underperforming on concerns about the global growth outlook, after a series of weaker data from the US and China lately, which weighed on commodities.