DY: U.S. Dollar, Japanese Yen on Defense Ahead of U.S. Open
Written by DailyFX Market Research
The market remained in risk seeking territory, which weighed on the USD and JPY. EUR-USD traded up to 1.4266 as a result, but was unable to sustain upward momentum amid strong Asian central bank offers. Meanwhile, Cable was boosted to 1.6544 highs, with U.K. data also supporting the bid tone, which saw EUR-GBP trade back in to 0.8600. There were reports of some JPY short positioning ahead of tomorrow's large investment trust launches, which are expected to favor the Aussie and other higher yielding currencies. AUD-USD traded up to 0.8208 highs as a result, but was capped by standing offers and mooted central bank supply, although unsubstantiated at current levels. Elsewhere, EUR-CHF traded back in to 1.5200 amid strong Swiss and German demand ahead of very good bids under 1.5150.
