Friday November 21, 2014 - 00:10:33 GMT
Reuters - www.reuters.com
Share This Story:
|
|
Email
FOREX-Dollar takes a breather, upbeat data underpins
5:45pm EST
SYDNEY, Nov 21 (Reuters) - The U.S. dollar paused for breath on Friday as its recent rapid ascent on the yen attracted profit taking, though the market mood remains bullish on the currency given the outperformance of the U.S. economy.
The dollar had set up camp at 118.21 yen to be within easy walking distance of the seven-year peak of 118.96, while the euro levelled off at 148.17 from a top around 149.12 .
Having climbed almost 10 yen since the Bank of Japan sprang its surprise easing in late October, the dollar was overdue some consolidation if not a correction.
"Still, the overall upside risks are intact with near-term pullbacks finding support at 117.05/00, before the 115.45/114.89 zone," wrote analysts at JPMorgan in a note to clients.
"In this regard, the push above the 117.95 late-2007 high turns the focus to the critical range of targets in the 120/122.85 zone."
The latter is crowded with major chart levels and could prove tough to break at the first attempt.
Figures out of the U.S. on Thursday were generally upbeat led by a stunning jump in the Philadelphia Fed survey of manufacturing which soared to its highest since 1993.
Inflation also surprised on the upside, with the core consumer price index nudging up to 1.8 percent for the year.
That should be a welcome development for many at the Federal Reserve who have been worried that inflation could stay too low for too long.
In contrast, data out of Europe was mostly weak with manufacturing surveys missing forecasts across the continent. The divergence in economic fortunes saw the euro ease back to $1.2539 and away from the week's high of $1.2599.
The data cupboard is bare for Friday but European Central Bank chief Mario Draghi and Bundesbank head Jens Weidmann are both due to speak at the European Banking Congress in Frankfurt. (Reporting by Wayne Cole; Editing by James Dalgleish)
© Thomson Reuters 2014. All rights reserved.
Forex Trading News
Forex Research
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
here.
Forex News
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."
We are starting an affiliate program to market some of our products.