Daily Market Review – Asian Session – Japanese Yen gains against Euro and USD

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The Euro traded steadily around 1.4230 for the early part of the US session, after having dropped by over 180 pips in yesterday’s sessions, which brought the EURUSD from 1.4410 to 1.4155 as sovereign debt problems in Europe saw investors cautious in investing in the single currency. Fears with regards to Greece having to restructure its debt as early as this summer helped push the Euro lower against the Dollar. The latter part of the Asian session saw the Euro dip by 30 pips to a two week low of 1.4204, before bouncing to trade for the remainder of the session around 1.4220.


The Sterling traded steadily around 1.6265 in the early stages, before experiencing a sharp drop in midsession which saw it fall and trade around the 1.6240’s. The GBPUSD pair has found some support around 1.6226, the 12th of April low, a break of which will see further support around the 1.6125 level.


The Australian Dollar continued descending against the USD, dropping to a low of 1.0458 from an open of 1.0507. In spite of an upbeat outlook from the Reserve Bank of Australia in its minutes for April, the recent global concerns overshadowed the appetite for risky currencies as investors looked to lower yielding currencies. The current level of the AUDUSD is around the 1.0466 level, with movement limited to +/- 5 pips.


The Japanese Yen experienced some volatility in the Asian session, as it edged higher against the Dollar, as a drop in Asian stock markets saw investors back off of their carry trades. The USDJPY pair went on to drop by some 35+ pips to a low of 1.0458. The recent threat from Standard and Poor’s to cut the United State’s triple A rating gave further boost to the USDJPY pair in its recent downward trend.


Gold stayed firm close to its recent all time high that was reached in yesterdays mid US session at $1497.5, after rising by over $20 as recent threat to downgrade the State’s triple A rating on top of the European debt woes that have recently resurfaced, have seen investors take comfort in the safe haven commodity. The precious metal dropped by a little over $7 in the Asian session as it currently trades around the $1490 level.