Previous session overview

The euro fell against the yen and dollar in Asia Friday as Japanese interbank players sold the currency to lock in profits after its sharp gains overnight.

As of 0450 GMT, the single currency stood at JPY112.03 after it rose as as a high JPY112.77 overnight as China's foreign-exchange regulator denied that it's reviewing its holdings of euro-zone debt. That compares with JPY112.30 in New York late Thursday.

Against the dollar, the euro stood at USD1.2296, compared with a high of USD1.2395 Thursday and its USD1.2356 level late in that session.

The U.S. unit rose to a one-week high of JPY91.36 in the Tokyo morning as gains in Tokyo share markets stifled demand for the yen. The Nikkei Stock Average was up 1.3% at one point in the Asian afternoon session.

As of 0450 GMT, the dollar was changing hands at JPY91.13 compared with around JPY90.90 Thursday. The ICE Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, was at 86.602 from 86.296.

Sterling is higher Friday against the euro but lower against the dollar, reflecting some indecision in the markets ahead of the European opening. With the main focus on the euro, sterling is likely to hold in narrow technical ranges.

The Australian dollar was sharply higher late Friday, rising to its strongest levels in over a week as confidence flowed back into global markets after China denied overnight a story that it was reviewing its holding of euro-zone debt.

Market expectation

Big banks are ratcheting down their forecasts for the euro, despite a 15% decline already this year, at a time of increasing concerns about fiscally-strapped European nations.

The median forecast of strategists at banks has the euro trading at USD1.22 by the end of June, then shedding another 3 cents in the second half of the year.

While the European fiscal problem is expected to keep weighing on the euro, investors' focus is likely to shift to a meeting of Group of 20 finance chiefs in South Korea, which is scheduled for early next month. Any comments about possible regulatory steps could raise uncertainty over financial markets, which may further prod investors to shift their money out of the euro to the safe-haven yen.

Dealers say EUR's downtrend may persist as deep-rooted problems in fiscally-troubled euro-zone nations may not be solved easily. Say speculators eager to sell EUR if negative news emerges. Says EURUSD's upside will likely be limited around USD1.2450 in global day, could fall toward USD1.2250 vs last USD1.2330. EURJPY's ceiling at JPY113.00; could fall toward JPY111.50 vs JPY112.37.

European stock markets are expected start higher Friday, with Wall Street's rally Thursday offering support as worries start to ease over Europe's debt situation, fuelling investors' appetite for risk.

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.

Commentaires

Ajouter Rechercher

Ecrire un commentaire
Nom:
Email:	ne pas notifiernotifier
Website:
Titre:
Saisissez le code que vous voyez.

Powered by !JoomlaComment 3.26

3.26 Copyright (C) 2008 Compojoom.com / Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."