Euro hits new 5-year high against yen - FXNET Market Overview


Active Trader
Dec 7, 2012
Limassol, Cyprus
The euro and sterling edged higher in Asia today, while the dollar was little changed against the yen. There were no key economic data releases during the session, and market sentiment kept yesterday’s risk-on mood, continuing from Friday’s upbeat US jobs numbers.

The euro climbed to a six-week high against the dollar at $1.3764 and hit a new five-year high against the yen at 142.15.

Investors are bullish on the euro as they do not expect the European Central Bank to ease policy further anytime soon. All eyes will be on ECB Chief Mario Draghi who will be speaking later today at an event in Rome.

Sterling rose to a two-year high versus the dollar, touching $1.6464. Bank of England Governor Mark Carney said yesterday that Britain’s recovery will need to be sustained for a while before it is strong enough to withstand higher interest rates. Focus will be on the release of a UK factory output report today.

The dollar reached a six-month high against the yen on expectations of tapering by the Federal Reserve soon. Yesterday Federal Reserve Bank of Dallas President Richard Fisher said the US central bank should begin scaling back its asset purchases as soon as possible.