Dollar Broadly Lower in Asian Trade

The U.S. Dollar edged lower against the Japanese Yen during thin trading in Asia and market players are anxious to see whether the Nikkei’s recent decline will continue and help to give the Japanese currency another boost. The greenback was also lower against the common currency Euro on improved figures of factory output from Germany which provided support even as Dollar bulls are being force to take a back seat until further clarity from the Federal Reserve regarding the reining in of its quantitative easing scheme is forthcoming. Disappointing labor data from Friday is still weighing on the U.S. Dollar and analysts believe that it could continue to be pressured for several months.

The EUR/USD edged up to $1.3314 though currency strategists believe that with a major resistance at $1.3323 to $1.3344, any further gains will likely be capped. Meanwhile the U.S. Dollar Index traded lower at 81.579.DXY, closing in on a key support level of 81.407 .DXY. Similarly, better than expected factory data from the U.K. helped to provide support for the Pound Sterling which pushed Cable higher against the U.S. Dollar. Markets will wait to hear what Mark Carney, the governor of the Bank of England, will say regarding their monetary policy; one currency analyst at JP Morgan recently warned investors that their expectations are for a continuing dovish outlook.