By: DailyForex.com
The common currency Euro moved higher against the US Dollar after some recovery in risk averse sentiment had FX traders reversing Dollar bets. The US Dollar Index skidded about 0.2% after recording a fresh 1-year weekly high. Last week’s volatility in global equity markets had carried over, albeit to a lesser degree, into the FX arena, with many investors seeking safe haven assets. The improved risk appetite will likely continue to help says one currency strategist, at least until mid-week when US CPI figures will be released.
As reported at 11:07 am (GMT) in London, the EUR/USD was trading at $1.2273, a gain of 0.18%; the pair earlier hit a peak of $1.22977 while the session low is at $1.22431. The GBP/USD was trading higher at $1.3865, a gain of 0.27%; the pair has ranged from a session low of $1.3809 to a peak of $1.3876. The USD/JPY was trading at 108.712 Yen, down 0.06% and well off the session trough of 108.513 Yen.
Kuroda Likely to Remain as BOJ Head
The Japanese Yen is likely to be some continued pressure on the latest news from the Bank of Japan. The media reported that the Bank of Japan’s current Governor, Haruhiko Kuroda, is likely to be nominated for another term. That suggests to investors that the current monetary policy, deemed as ultra-loose, is likely to remain in place. The government will officially present Kuroda’s name for nomination later this week. Also in Japan, preliminary GDP figures for the fourth quarter of 2017 will be released on Wednesday and are expected to have shown a slowdown in the economy, both on an annualized and quarterly basis.