Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

FOREX-Yen rally tempered, oil price jump inspires commodity currencies

Published 13/04/2016, 12:55 pm
© Reuters.  FOREX-Yen rally tempered, oil price jump inspires commodity currencies
EUR/USD
-
USD/JPY
-
AUD/USD
-
USD/CAD
-
EUR/JPY
-
USD/NOK
-
BNPP
-
DX
-
DXY
-

* Yen off recent peaks after oil gains underpin risk appetite

* Canadian dollar hits 9-month highs, Aussie near 2016 peak

* Upbeat China trade data help Aussie extend gains

* Oil prices extend gains on production freeze hope (Updates prices, adds details and quotes)

By Ian Chua and Shinichi Saoshiro

SYDNEY/TOKYO, April 13 (Reuters) - The safe-haven Japanese yen slid from recent peaks against the greenback on Wednesday as solid gains in oil prices helped underpin risk appetite.

With hopes of a production cap agreed by top producers Russia and Saudi Arabia back in play, global oil prices climbed to four-month highs overnight. dollar gained along with the Australian dollar as risk appetite improved in the broader financial markets. What was eye-catching was that the dollar rose without support from Japanese officials' jawboning," said Masafumi Yamamoto, chief forex strategist at Mizuho Securities in Tokyo.

The greenback rose as high as 108.905 yen JPY= , having climbed from a near 18-month trough around 107.63 set on Monday.

The yen has mostly brushed off recent comments by Japanese officials warning that a rapid appreciation by the currency was unwelcome.

The euro rose to 123.85 yen EURJPY=R , putting further distance from a three-year low of 122.085 set last month.

The Canadian dollar hovered just under a nine-month peak, having rallied along with other commodity currencies such as the Australian dollar on higher oil prices.

Canada's loonie stood at C$1.2760 per USD CAD=D4 , not far from the overnight high of C$1.2750 - a level last seen in July.

Also helping the currency, the Bank of Canada is widely expected to hold interest rates at 0.5 percent following its meeting on Wednesday. After a run of better-than-expected economic data at the start of the year, the central bank is also likely to raise its growth forecasts.

Other commodity currencies were also firmer with the Australian dollar up 0.4 percent at $0.7711 AUD=D4 , nearing its 2016 peak of $0.7723 set a few weeks ago.

The Aussie extended gains as upbeat China trade data favoured risk appetite. Chinese exports in March rose a much stronger-than-expected 11.5 percent, the first increase since June and largest gain since February 2015. ECONCN Norwegian crown pulled back slightly to 8.1718 per dollar NOK= after advancing to a six-month high of 8.1225 on Tuesday.

The euro was subdued in contrast. The common currency eased 0.2 percent to $1.1369 EUR= after turning around from a six-month peak of $1.1465. That helped the dollar index .DXY climb back above 94.000, from a near eight-month low of 93.627.

"Given that the market is quite short USD against the EUR and JPY, and with U.S. inflation data also likely to be on the firm side on Thursday, we expect the USD's corrective recovery against the core majors to extend a little further this week," analysts at BNP Paribas (PA:BNPP) wrote in a note to clients.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.