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    15.06.2016 06:18 Asian session: Sterling steadied

    15.06.2016 06:18

    Asian session: Sterling steadied

    The euro nursed losses against the dollar on Wednesday as the benchmark German government bond yield turned negative for the first time due to worries that Britain might vote next week to leave the European Union, while investors stayed cautions ahead of a Federal Reserve's policy decision later in the global day.

    The yen gave back a bit of ground against the dollar as a bounce by recently battered Tokyo stocks slightly improved investor risk appetite for the time being.

    The dollar edged up 0.2 percent to 106.260 yen, having bounced from an overnight low of 105.630 thanks to Tuesday's upbeat May U.S. retail sales data. A drop below 105.55 would take the greenback to its lowest level since October 2014.

    In addition to safe-haven bids for the yen, the dollar has been on the back foot against its Japanese counterpart as prospects of the Fed raising rates this month have been dashed by soft U.S. data, notably the much weaker-than-expected May non-farm payrolls report.

    The Fed concludes its two-day Federal Open Market Committee (FOMC) meeting later on Wednesday.

    The likelihood of the Fed hiking interest rates will be very low while Brexit worries dominate action in the financial markets.

    That said, the FOMC meeting will still garner attention as it will give the market a chance to gauge the Fed's stance on rate hikes at the July meeting and beyond.

    Sterling steadied at $1.4120 after recovering slightly from a two-month low of $1.4091 plumbed Tuesday on Brexit fears.

    The Australian dollar traded at $0.7355, within reach of a one-month high of $0.7505 touched last week.

    That high was reached as the Reserve Bank of Australia (RBA) appeared less dovish than some had expected last week, when it left interest rates unchanged and did not hint at an explict easing bias. Lower commodity prices, however, have since capped the Aussie.


    EUR / USD: during the Asian session, the pair is trading in the range of $ 1.1190-1.1215

    GBP / USD: during the Asian session, the pair is trading in the range of $ 1.4090-1.4150

    USD / JPY: during the Asian session, the pair was trading in range Y105.95-106.30


    Based on Reuters materials


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