Dollar Holds Ground in Asian Trade
The US Dollar was range-bound relative to the majority of its peers during Asian trade on Friday as investors' risk appetite remained jittery. The Japanese Yen, as a safe haven currency, was relatively flat against the Dollar, given investor caution. The common currency Euro also remained close to the recently struck 2-month trough after the European Central Bank left markets uncertain on the timing of the next interest rate hike. Analysts still expect to see a return to safe haven assets as concerns over the Brexit outcome as well as the political turmoil in parts of Europe weigh on sentiment.
As reported at 11:19 am (JST) in Tokyo, the USD/JPY was trading at 112.359 Yen, down 0.01% and near mid-range of the pair which had earlier hit a peak of 112.444 Yen while the low was recorded at 112.272 Yen. The EUR/USD was trading at $1.1372, down 0.01%, and moving away from the session trough of $1.13627.
US and Eurozone to Vie for Market's Attention
Ahead for the trading day, with the exception of a Consumer Confidence Survey in Germany, market attention will likely be divided between the United States and the Eurozone. In the US, markets will focus on the US Bureau of Economic Analysis' release of preliminary figures for 3rd Gross National Product. The latest poll suggests that annualized GDP will have fallen to 3.3% in for the third quarter, down from 4.2% in the previous reporting period. Core Personal Expenditures are also predicted to declined in the third quarter, down to 1.8% (quarter-over-quarter), from 2.1%. At the same time as the economic release in the US, the head of the European Central Bank, Mario Draghi, will be speaking at length in Belgium where market players hope will will elaborate on the ECB's outlook.