USD/JPY at 102.30 on Reduced Haven Demand

The yen held a loss from yesterday against the dollar as tension eased in Ukraine and President Barack Obama gave full U.S. support for Iraq’s president to form a new government, reducing haven demand.

The euro fell toward the lowest since November versus the greenback before data this week economists forecast will show investor confidence in Germany dropped to the lowest since December 2012 and growth in the region slowed. A gauge of the dollar was 0.3 percent from the highest since February before a report that may show U.S. retail sales grew for a sixth month. Australia’s dollar was near a two-month low before a private report on business confidence.

“Some of the yen buying on the back of geopolitical risks, especially those around Russia, is easing,” said Etsuko Yamashita, chief economist at Sumitomo Mitsui Banking Corp. in New York. “Dollar-yen continues to be stuck between 101 and 102. Unless we see a big upside or downside surprise in U.S. data such as retail sales this week, it is unlikely the pair will move out of its recent range.”

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.