TeleTrade - Analytics


    735.00 6.50/10
    57% of positive reviews

    20.06.2016 06:27 Asian session: The pound climbed

    20.06.2016 06:27

    Asian session: The pound climbed

    June 20 Sterling rallied early on Monday as momentum swung in favour for Britain to remain in the European Union just days ahead of a referendum, helping underpin risk sentiment which in turn weighed on the safe-haven yen.

    The pound climbed 0.9 percent to $1.4483, extending a recovery from last week's two-month trough of $1.4013. It jumped 1.7 percent to 151.75 yen, pulling well away from a three-year trough of 145.34 set on Thursday.

    Investors took heart after three of six opinion polls published over the weekend showed a shift towards keeping Britain in the EU, but the June 23 vote still looked too close to call.

    Indicating a general pick-up in risk appetite, U.S. stock futures rose 0.9 percent, suggesting a positive open on Wall Street later in the day.

    As a result, the yen dipped across the board - a move that may help ease worries about the strength in the currency.

    On Friday, Finance Minister Taro Aso said he was deeply concerned about "one-sided, rapid and speculative" currency moves and would respond urgently if needed - a hint at possible yen-selling market intervention.

    The dollar climbed 0.6 percent to 104.68 yen, while the euro put on 1.1 percent to 118.72 yen.

    Against the greenback, the common currency edged up 0.5 percent to $1.1333. The dollar index eased 0.4 percent to 93.825.

    The Australian dollar, usually sold off in times of heightened risk aversion, gained 0.4 percent to $0.7422 . It rose 0.9 percent on the yen to 77.67.

    Analysts warned there is little conviction in markets and moves could easily reverse if sentiment turned negative.

    "Price action seemed very tentative everywhere, reflecting a mild trimming of ultra-cautious positions ahead of this week's Brexit referendum," analysts at ANZ wrote in a note to clients.

    EUR / USD: during the Asian session, the pair was trading in the $ 1.1310-55

    GBP / USD: during the Asian session, the pair is trading in the range of $ 1.4435-1.4560

    USD / JPY: during the Asian session, the pair was trading in range Y104.40-60

    Based on Reuters materials

    To leave a comment you must or Join us

    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree