The Euro extended its gains over the weak Dollar as part of the Asian session. It is expected that among many the reasons that this continues uprising is occurring are the following. Since all attempts to improve the economic condition in the United States appear to be failing weaker Dollar could give boosts for more exports to occur , benefiting from the low Dollar values, and hence increase the country’s cash flow. Furthermore main market players and interbanks continue to perform stop-loss trading aiming to trigger as many stop-losses as possible to take out short players. The Euro is approaching more and more the previous 1.4904 high from December 2009 whose outreach could skyrocket the Euro.
The Japanese Yen continued its recovery against the US Dollar from the blow it received yesterday when Standard & Poor’s Credit Ratings Agency announced a possible negative debt outlook for Japan. The Japanese Yen recovery has started since the mid-EU session following a peak high occurring at 82.80. A few hours after the start of the Asian Session several economic indicators were announced for Japan such as the Consumer Price Index, Unemployment Rate and Industrial Productions rate none of which appeared to be hawkish as they appeared to be either steady as expected or have declined. The response to these indicators was rather short, with the dollar making some gains over the minutes of the announcement, as the market appears to have discounted them given the earthquake disasters and a potential credit rating decline. Shortly before the end of the session the Bank of Japan announced its interest rates decision to remain steady at the 0.1% level as it was vastly expected.
The Sterling continued its massive upraise over the Dollar. GBP long holders appear to still remain confident from the 0.5% GDP figure announcement having some expectations that the possibility of an interest rate hike is not yet ruled out. The GBPUSD pair started the Asian session at 1.6625 and making gains of over 120pips and continues to rise. Following the announcement of the GDP rate combined with the Dovish Interest Rates decision and comments for the US Dollar have given the Sterling over 300 pips today which is something that cannot be ignored.
The Aussie continues to dominate the American Dollar as everything appears to be working against the American greenback. A combination of technical indicators, bearish news for the States, stop-loss triggering and the hawkish news from yesterday for the Australian GDP can only be signals that it will be a while until we see a severe decline in the AUSUSD pair.
Gold continued to rise in value over the Asian session as well. With the US Dollar weakening the only way it could go it’s up. Over the session Gold has developed a short trend with two peaks and two troughs and over the last hour it has been generating most of its gains as it is currently traded at record high levels and constantly updates them.