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4 Apr 2013
Forex Flash: G7 up on dollar - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that G7 currencies are up against the dollar yesterday following the disappointing ADP and non-manufacturing ISM numbers.
These underwhelming numbers fueled the majors higher while JPY weakened rapidly against the dollar following new BoJ Governor Kuroda´s day of reckoning which saw USD/JPY move over two points after the announcement of ultra loose policies. On other fronts, he notes that with the commodity complex on a slippery slope, the growth-linked currencies like the AUD, NZD, and CAD under performed outside of the dollar sphere. Looking ahead, Ng comments that the ECB and BoE meeting ahead mean that markets are expected to keep their powder dry for now. Regarding the ECB, he writes, “expectations are for a hint of caution from Draghi (1145 GMT) given the recent uncertainty out of Cyprus and the less than encouraging stream of data releases.”
These underwhelming numbers fueled the majors higher while JPY weakened rapidly against the dollar following new BoJ Governor Kuroda´s day of reckoning which saw USD/JPY move over two points after the announcement of ultra loose policies. On other fronts, he notes that with the commodity complex on a slippery slope, the growth-linked currencies like the AUD, NZD, and CAD under performed outside of the dollar sphere. Looking ahead, Ng comments that the ECB and BoE meeting ahead mean that markets are expected to keep their powder dry for now. Regarding the ECB, he writes, “expectations are for a hint of caution from Draghi (1145 GMT) given the recent uncertainty out of Cyprus and the less than encouraging stream of data releases.”