Previous session overview

The dollar rose to a two-week-high against the yen Monday in Asia, as higher regional shares bolstered investors' appetite for riskier, higher-yielding assets, and they dumped the safe-haven Japanese unit for the U.S. currency.

The greenback rose as high as JPY90.69, its highest since Feb. 23 as Asian investors took cues from Japan's benchmark Nikkei 225 Stock Average and China's Shanghai Composite Index.

The U.S. government said Friday that non-farm payrolls decreased by 36,000 in February from the month before. This was much better than the 75,000 decline economists had expected.

As of 0450 GMT, the dollar was at JPY90.41 from JPY90.33 Friday in New York.

The EURUSD traded with a soft undertone in Asia and Europe morning as German Economy Minister Rainer Bruederle said the German government had no intention of offering Greece a single cent in financial aid and price fell to an intra-day low of USD1.3530 shortly after U.S. released its jobs data.

The British pound lost its recent gains against the dollar following data US job losses was smaller than expected. The Office for National Statistics reported annual producer output price inflation accelerated to 4.1% in February, the highest rate since December 2008.

After surging over the weekend, the Australian dollar continued its upward move in Asian trade Monday as Friday's strong jobs report in the U.S. and further easing of Greek debt worries continued to drive investors into the local currency.

Market expectation

Higher Asian share prices often push the yen lower, as Japanese investors become more aggressive about investing in overseas assets with higher yields.

The yen's decline, however, isn't likely to continue for long because Japanese exporters still have a vigorous appetite for yen, analysts said. Exporters need a hefty volume of yen ahead of the March 31 fiscal year-end when they close their books.

There is also a risk that demand for yen will increase again if upcoming U.S. economic data, such as Friday's retail sales, turn out weaker than expected, analysts said.

EURUSD traders note that offers are seen stacked from above USD1.3700 (earlier high USD1.3704) through to USD1.3725, adding that stops are reported on a break above the Mar 3 high at USD1.3736. Rate currently trades back around USD1.3675.

Pound having extended recovery highs to USD1.5195 in early European dealing (USD1.5191 Asia high) it squeezes lower, currently easing in to challenge support at USD1.5155.50. Below here and rate can slip toward USD1.5130.

European stocks are expected to open higher, Monday, following stronger performances in the U.S. and Asian equity markets, while the euro has continued to attract buyers on improved sentiment about Greece and the U.S. economy.

Disclaimer: the data made available by Dukascopy (Suisse) SAis for informational purposes only. Publication of this data by Dukascopy (Suisse) SA does not constitute provision of investment advice and Dukascopy (Suisse) SA assumes no responsibility with regard toany information, forecast or recommendation herein contained and assumes no responsibility with regard toany losses resulting from any activities conducted the basis of this data, including any investment decisions.

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