Forex - Dollar, euro push higher against yen
Investing.com
Published May 09, 2017 06:27AM ET
Dollar, euro push higher against yen
Investing.com - The dollar and the euro moved higher against the yen on Tuesday, boosted by diverging outlooks for economic growth and tighter monetary policy.
The euro climbed against the yen, with EUR/JPY at 123.95, not far from the one-year peaks of 124.61 set on Monday in the aftermath of Emmanuel Macron’s convincing win in the French presidential election.
The victory for Macron signaled that political risks in France and across Europe are receding, in the wake of the populist surge which resulted in Brexit and propelled Donald Trump to the White House.
Demand for the single currency continued to be underpinned by indications of an improving economic outlook in Europe and as worries over political risk faded.
Recent economic reports have indicated that the economic recovery in the euro area is gathering momentum, which is expected to give the European Central Bank more room to tighten monetary policy before the end of the year.
ECB board member Yves Mersch said on Monday that the central bank will soon be able to adopt a more optimistic tone on the euro-area economy, a possible first step in winding down stimulus.
The euro was at seven-month highs against the traditional safe haven Swiss franc, with EUR/CHF at 1.0924.
The dollar hit fresh seven-week highs against the yen, with USD/JPY rising 0.42% to 113.71 amid expectations for Federal Reserve rate hike in June.
Markets are pricing in around an 82% chance of a hike at the Fed's June meeting, according to Investing.com’s Fed Rate Monitor Tool.
The euro was lower against the dollar as investors took profits after its recent rally.
EUR/USD was down 0.27% at 1.0894 after hitting 1.1021 on Monday, the highest level since early November.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.25% at 99.28.
Sterling was a touch lower, with GBP/USD dipping to 1.2927.
Meanwhile, the Australian dollar slumped to four-month lows pressured lower by disappointing domestic retail sales data and recent weakness in commodity prices.
AUD/USD touched lows of 0.7336 and was last at 0.7344, off 0.56% for the day.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.