Article by ForexTime

USD/JPY extended higher in Asia from 105.07 to 105.28 before steadying. The yen is vulnerable as in Japan there will be Cabinet reshuffles today. Expectations of the Bank of Japan to ease policy further is also pressuring the yen. EUR/JPY saw a bump up from 138.02 to 138.25 with the market still short.

EUR/USD opened in Asia at 1.3133 after holding up extremely well despite solid USD gains against most other currencies yesterday. The pair edged higher up to 1.3135 early in Asia, it then later drifted lower to 1.3122. Short-covering in various EUR crosses continues to be supportive. The expectations of policy easing by the European Central Bank at its policy meeting on Thursday has pressured the euro recently although the market looks to have shifted views and now seems to be favoring no policy changes. Sentiment does remain bearish however.

GBP/USD extended losses to a new six-month low, down from 1.6474 to 1.6445 on continuing USD strength and concerns over the Scotland referendum on independence. According to a “YouGov” poll, the “yes” camp for Scottish pro-independence rose 47 percent, a four-point gain since mid-August and up eight points since the start of the month.

EUR/GBP was better bid between 0.7971-79 and marginally above yesterday’s 0.7976 high on continuing short-covering.

USD/CHF bounced a bit from last night’s and early Asia’s 0.9189 low to 0.9200. EUR/CHF treaded water between 1.2070-74 and out of the market’s focus for now.

AUD/USD opened in Asia at 0.9275 and traded soggy between 0.9263-0.9305 on continuing USD strength. 0.9272-88 was the range prior to the Australian GDP release. Some volatility ensued post-data. Subsequent comments from RBA Gov Stevens had little effect on the market.

Article by ForexTime

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