The US Dollar continued to move broadly and decidedly higher against its major peers, which helped to push Japan’s Nikkei index to a fresh 10-month peak. The greenback continues to benefit from an optimistic outlook which includes increased fiscal spending and trade barriers that would support US exports, all of which could help push the pace of inflation. The latest economic data from the US also helped lift the greenback with housing starts hitting a 9-year peak and jobless claims reaching the lowest level in more than four decades.
As reported at 10:52 am (JMT) in Tokyo, the USD/JPY was trading at 110.53 Yen, up 0.27% and well above yesterday’s range which hit 109.9300 Yen at the low end and 110.3400 Yen at the top. The AUD/USD was trading at $0.7393, down 0.32% while the NZD/USD was at $0.7021, down 0.13%.
Markets to Focus on Draghi
Yesterday, Fed Chief Janet Yellen told the US Congress that she does not envision any major changes to the Fed’s outlook, even given the Trump victory. With Ms. Yellen’s testimony now out of the way, markets will turn their attention later today to the Eurozone where Mario Draghi, the head of the European Central Bank, is due to give a speech at the European Banking Congress in Frankfurt. Mr. Draghi is expected to discuss the impact that Donald Trump’s presidency could have on the Eurozone. Moreover, he’s likely to reiterate the importance of governmental fiscal stimulus in addition to the ECB’s monetary policies in order to stimulate the EU economy. The EUR/USD pair is currently trading lower at $1.0598, down 0.24%.