Forex US Daily Review – USDJPY rebounds off all-time low awaiting G7 meeting

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The Euro rose against the U.S. dollar today, where the EURUSD pair hit a fresh 4-month high of 1.4052 during the European trading session, and is now trading at 1.4021 at time of writing. It opened the U.S. session at 1.4017, and remained in a range with a high of 1.4041 and a low of 1.3979. Much of the boost to the Single currency was given by the successful Spanish bond auction earlier today and the expectation that the Eurozone interest rates were likely to rise soon. The greenback began to fight back against the Euro after strong U.S. macroeconomic data were released soon after the New York open, reporting a rise in CPI, while the Philly Fed manufacturing survey beat expectations and rose to a strong reading of 43.4 in March compared to the previous 35.9.

Sterling followed suit from the Euro’s rise against the Dollar and rose to a high of 1.6159 in U.S. trading hours, remaining on higher ground that was reached by a jump of as much as 141 pips during the European session. Cable is currently trading steadily at the 1.6133 level. The U.S dollar dropped against most majors as investors’ concerns recede and are willing to invest in higher yielding assets again.

USDCHF rebounded slightly today after being on a downtrend and hitting an all-time low yesterday of 0.8921. It is currently at 0.9003, trading in a tight range today. The G7 meeting regarding Japan, eased investors’ fears and slightly shifting demand away from the safe haven currency.

The Canadian Dollar gained against the U.S. Dollar earlier today, gaining steadily during the European session and holding on to gains after better than expected economic data, as wholesale sales increase for the sixth consecutive month and rose 1.5% in January. Oil price back above $ 100 per barrel, gave the Loonie further support this Thursday. The USDCAD pair is currently trading within a range of 0.9854 and 0.9884.

The Japanese Yen rose to an all-time high against U.S. Dollar yesterday but since then the USDJPY pair rebounded almost immediately upon speculation of an intervention to halt the rise of the Japanese currency. If the G7 decide to intervene to assist the BoJ in order to curb excessive rise in the currency pair, it might cause tremendous volatility. The USDJPY pair is currently trading at 78.92, over 260 higher than yesterday’s all-time low of 76.33.

Gold rebounded today hitting a resistance level of 1403.81, regaining losses from yesterday as the U.S. Dollar weakened slightly today.

EURUSD USDJPY GBPUSD USDCHF USDCAD GOLD
OPEN

(12:00 GMT)

1.4017 78.48 1.6127 0.9014 0.9875 1402.88
DAY’S HIGH 1.4041 79.33 1.6159 0.9037 0.9886 1404.87
DAY’S LOW 1.3979 78.46 1.6096 0.8982 0.9833 1396.80
CLOSE

(21:00 GMT)

1.4020 78.88 1.6134 0.8983 0.9847 1403.54