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The US dollar has demonstrated notable strength
particularly evident in the USD/JPY pair.
“In the London market, the US dollar has demonstrated notable strength, particularly evident in the USD/JPY pair”
After the conclusion of the Bank of Japan’s policy meeting and Governor Kuroda’s press conference, during which a commitment to a monetary easing stance was reiterated, the USD/JPY pair experienced a robust surge, hovering around 148.42. This places it in close proximity to the year-to-date peak established at approximately 148.46 on the preceding day. Nonetheless, the prevailing momentum has tapered off, resulting in a trading range in the lower 148 yen region. This moderation can be attributed to a temporary slowdown in the ascent of US Treasury yields.
Simultaneously, the Euro, amidst its price fluctuations, initially witnessed substantial buying pressure, propelling the EUR/USD pair to the upper 1.06 range. However, it subsequently retreated, stabilizing around 1.0610 following a substantial dip in France’s preliminary PMI figures. Although a brief resurgence occurred upon the release of improved preliminary PMI data for Germany, the Euro encountered resistance at higher levels, leading to a relatively subdued performance. This pattern also extended to the Euro to Yen (EUR/JPY) pair, which reached 158 yen briefly before declining to levels below 157.50. Currently, it maintains a position in the mid-157 yen range.
Moving to the Pound Sterling (GBP) against the US Dollar (USD) pair, trading commenced around the mid-1.22s during the Tokyo session. As London trading hours unfolded, both this pair and the EUR/USD displayed a weakening trend. Subsequent to the publication of preliminary UK PMI figures, the GBP/USD pair touched its nadir, reaching approximately 1.2233. The Pound to Yen (GBP/JPY) pair initially attracted buying interest, achieving levels near 182.30, before encountering bearish sentiment and softening to values below 181.50. Similarly, the Euro to Pound (EUR/GBP) pair initially experienced selling pressure, dropping to around 0.8660, but later made a recovery, hovering around 0.8695. Presently, the pair maintains a stable position, albeit with somewhat subdued buying momentum.
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