The euro remains vulnerable, not far from a 4-month low against the dollar on fragile risk appetite due to concerns over Greece’s exit from the euro zone. Greek banks face funding needs after European Central Bank stopped providing liquidity to some banks as they are severely under capitalised. EURUSD opened in Asia at 1.2714 after a choppy U.S. session that saw the pair fall below 1.2700. Euro has lost over 4 percent in May.
GBPUSD was little changed, trading the session between 1.5908 and 1.5931. Sterling is still under pressure after after the Bank of England issued a weaker growth outlook in its quarterly inflation report yesterday.
USDJPY traded between 80.24 and 80.38. Despite stronger than expected GDP growth numbers from Japan this morning, the yen failed to strengthen after the Bank of Japan governor Shirakawa signalled that the bank could add further stimulus. EURJPY opened the Asia session at 102.12 and rose to 102.36.
The Australian dollar took a pause from a sharp four-day decline against the greenback, finding support above $0.9900. A weaker U.S. dollar helped lift the aussie, after the US Federal Reserve minutes on Wednesday showed a possibility of more quantitative easing, which is negative for the USD.