Forex Intraday Round-up: EUR Remains Bullish, JPY Nears Seven Month Low Versus USD

on Nov 30, 2012
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**USD/JPY**

The pair reached an intraday high of 82.76, almost touching the seven month high printed on 22 November at 82.84. The yen’s weakness came out of increased speculation on the market that the Bank of Japan will adopt a more aggressive monetary policy aiming at 2 percent inflation following the
December elections.
At 12.20 GMT the USD/JPY was trading at 82.67/68 or 0.68 percent higher than yesterday. “Probably the consolidation pattern below 82.82 high is already over with the recent low at 81.67 and a break through 82.62 will confirm that the uptrend is renewed towards 84.80” opined Stoyan Mihaylov, an analyst at Deltastock, as quoted by FXstreet.com.

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**EUR/GBP**
Just as most euro crosses, the EUR/GBP has been bullish today trading in positive territory at 0.8103/04 after failing to break its November high of 0.8115.
The euro received a considerable boost after the German Bundestag voted on the Greek rescue package with 473 members in favour, 100 against and 11 abstained. “The euro has had the upper hand this week thanks to improving sentiment,” said Lee McDarby, head of dealing on the corporate and institutional treasury desk at Investec Bank.

!m[The Aussie Slipped on Speculation that the RBA Will Cut Interest Rates](/uploads/story/941/thumbs/pic1_inline.png)An index measuring UK sentiment improved to negative 22 this month, its highest reading since the first half of 2011. According to analysts, Bank of England policy makers will maintain their asset-purchase target at £375 billion when they meet on 5 and 6 December. The last time the programme expanded was in July with £50 billion.

Commerzbank analyst Karen Jones commented it is possible for the EUR/GBP to break above the 0.8157/65 resistance although the prospects are slim.
**AUD/USD**
The Australian Dollar weakened against most of its counterparts and fell to $1.0412 in intraday trading on speculations that the Reserve Bank of Australia (RBA) will lower interest rates to support the economy in response to a slowdown in the mining sector. This week the Aussie is headed for a 0.3 percent decline against the US dollar, having gained 0.6 percent so far in November.

A report yesterday showed a lower mining investment projection, which led market participants to believe that the RBA will interfere to shield the economy. “It wouldn’t be overly surprising if the RBA cuts rates next week, given yesterday’s capital expenditure data, which was downgraded,” said Peter Dragicevich, a currency economist at the Commonwealth Bank of Australia, as quoted by Bloomberg. “We don’t think an actual cut next week will put too much downward pressure on Aussie — a lot of the cuts are already factored into the market.”
**USD/CAD**
Canada’s dollar declined versus the US dollar on back of data showing that the country’s current-account deficit increased to the second-largest on record. At 13.00 GMT the USD/CAD pair was trading in the green at 0.9937/40 – the highest level so far today.
In October the current account deficit came out at $18.9 billion (£11.8 billion) while Industrial Product Prices contracted by 0.1 percent from September.

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