The Yen remained soft while the Dollar bloc currencies extended recent gains as risk appetite in global markets held up, with a reported dip in new coronavirus (now Covid-19)cases in China being tonic for investors. Wall Street yesterday saw fresh record highs, while the MSCI Asia-Pacific equity index rose by another 1% today. USDJPY lifted through 110.00 to 110.13 and above Tuesday’s high at 109.96. AUDJPY, now in its third consecutive day of ascent, carved out a five-day high at 74.23 , stalling at R2. AUDUSD and NZDUSD lifted to respective a six-day highs, at 0.6737 and 0.6476, while USDCAD fell to a six-day low at 1.3272. The RBNZ left policy on hold following a board meeting today, and also removed guidance for more rate cuts, saying that only a longer than currently anticipated impact from the Covid-19 outbreak would warrant any further easing. New Zealand also has an election this November. Governor Orr is due to testify later today (19:10 GMT) on today’s MPC statement before Finance and Expenditure Select Committee.
Elsewhere, EURUSD looks to have found a footing after a run of seven consecutive down days, steadying so far today around 1.0900-1.0925, above the four-month low that was printed at 1.0891. Cable edged out a six-day high at 1.2969, surpassing yesterday’s high by a pip, while EURGBP ebbed to a nine-day low at 0.8413. The Pound is amid a phase of modest outperformance, with available January data out of the UK have shown a rebound in economic activity as the fog of political uncertainty cleared following the December general election, while Prime Minister Johnson announcing big plans for infrastructure projects. These have helped quell, for now, concerns about Brexit and divergence from the EU.
Click here to access the Economic Calendar
Head Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.