SHARE ON
email info@towef.org phone (647) 201-1086
contact us
Tutor on Wheels > 2013 > May > 4 > 3 percent lower against the yen at 102

3 percent lower against the yen at 102

Euro edges higher as liquidity tightens

Yen gains on profit 2018 canada goose outlet taking after euro, dollar rallies

By Laurence Fletcher

LONDON, Dec 11 (Reuters) The euro inched canada goose black friday sale higher against the dollar on Wednesday, driven by dwindling excess cash in the euro zone banking system, but fell against the yen as investors locked in profits from this year rally.

The euro was up 0.1 percent against the dollar at $1.3767, not far from the six week high of $1.3795 it hit on Tuesday. It was 0.2 percent down against the yen at 141.15 yen but up 23 percent this year.

The canada goose outlet toronto factory single currency has shrugged off some poor recent economic data particularly in France, where industrial output is Canada Goose Outlet declining to surprise many analysts and move higher since the summer.

A key driver has been tighter money markets, as canada goose store banks repay Canada Goose Jackets borrowing from the European Central Bank. Liquidity usually tightens towards the end of the canada goose deals year anyway, when banks hold off from lending to each other.

And the ECB unwillingness to ease monetary policy soon, despite inflation low enough to prompted canada goose clearance talk of deflation, has canada goose coats on sale seen a rise in two year swap rates.

This year, canada goose clearance sale another factor driving euro strength is European banks repatriating funds to shore up their capital bases before an ECB Asset Quality Review (AQR).

still seems to be decent underlying Canada Goose online euro support, said Simon Smith, head of research at FxPro. still seeing money market rates moving higher.

He said the euro could hold the upper 1.30s level early next year. Federal Reserve begins slowing canada goose its huge bond buying programme.

One year risk reversals which compare demand for options on a currency rising or falling show a bias for euro puts, or bets that Canada Goose Parka it will weaken. That suggests many speculators think the rally will not last.

The euro also took heart from news that euro zone countries were edging towards a deal on how to handle ailing banks. Divisions remain over key parts of the reform, which is needed to underpin confidence in the bloc lenders.

The Swiss franc canadian goose jacket hit a seven month high against canada goose replica the euro canada goose outlet store locations of 1.22055 francs per euro in early trading, before falling back to 1.22150 Canada Goose Coats On Sale francs per euro, as banks repatriated francs.

The yen rose for a second day as global stock markets fell and investors locked in profits. The dollar was 0.3 percent lower against the yen at 102.55 yen.

Global shares were lower on Wednesday, as investors booked profits buy canada goose jacket on a range of once crowded positions. The Nikkei Canada Goose sale and the yen tend to move in opposite directions, with a rally in the index a signal for speculators to sell the yen. A weaker currency then boosts Canada Goose Online Japanese exports, which helps shares.

Both the euro and the dollar have rallied strongly against the yen this buy canada goose jacket cheap year thanks to the Bank of Japan ultra loose monetary getcanadagooseoutlet policy and expectations that it will provide even more canada goose coats stimulus next year.

Analysts at Morgan Stanley said they remain bullish on dollar/yen over the longer term but added:. note that cheap Canada Goose the current uptrend is showing some signs of exhaustion, suggesting that it like web would not take too big a shock to trigger a correction of the strong gains seen over the past year. Congress have reached a two year deal aimed at avoiding a government shutdown.

Leave a Response