Weaker Dollar coupled with excitement in Asia
All the overnight action has been with the Yen. The Nikkei 225 declining rapidly last night showing a staggering 20% move from last month’s high. Little in the way of reason for last night’s huge move, other than speculators closing positions in light of the Bank of Japan’s reluctant to step in with quantitative easing.
All eyes seem to be on May’s US retail sales report with an exceptional rise of 4%, an improvement from the 1% recorded last month and the likely timing and what cut backs are likely in the Federal Reserve’s monthly asset purchases and whether further weakness is likely.
EUR/USD hit 1.3388 during late Asian trading the highest since February but subsequently consolidated into the low 1.33 range.
GBP/EUR holding steady in the early to mid 1.17 region.
GBP/USD weaker at 1.5600 plus.