AceTraderforex Sept 3 : Yen weakens broadly as worries on Syria eases

[B]Market Review[/B] - 02/09/2013 [I]22:15GMT[/I]

[B]Yen weakens broadly as worries on Syria eases[/B]

The Japanese yen fell sharply against other currencies on Monday as worries over recent military actions in Syria are diminishing. The yen was also pressured on improved risk appetite after release of upbeat manufacturing PMIs in China and Europe.

Versus the Japanese yen, the greenback climbed above last Thursday’s top at 98.52 to 98.68 in Asia due to the rise in Japanese equities. The pair rallied to a 4-week high at 99.42 in European morning on active cross selling of yen on diminishing worries about the imminent military actions in Syria but then retreated to 99.12 in thin American session as U.S. and Canadian markets were closed for Labour Day holiday.

Despite euro’s brief fall to 1.3192 in Asian morning, the pair edged higher in tandem with sterling to 1.3227 in European morning but only to retreat to 1.3183 near European close on dollar’s renewed broad-based strength in thin trading condition.

The British pound opened higher at 1.5544 in New Zealand but then dropped briefly to 1.5507 in Asia. Later, price rose to 1.5569 in European morning on cross buying of sterling versus other currencies and then climbed to intra-day high of 1.5594 after the release of better-than-expected U.K. manufacturing PMI, the index climbed to a 2-1/2 year peak (57.2 versus the forecast of 55.0) before retreating to 1.5531 ahead of European close.

On the data front, U.K. Hometrack housing survey was released at 0.4% m/m and 1.8%, higher than the previous readings of 0.3% and 1.3% respectively. China HSBC manufacturing PMI came in at 50.1, versus the forecast of 50.2 and the previous 47.7. Swiss PMI in Aug came in at 54.6, worse than the forecast of 55.9. German and eurozone manufacturing PMI in August came in at 51.8 and 51.4, versus the forecast of 52.0 and 51.3.

In other news, a Germany’s CDU lawmaker said
’German Finance Minister Schaeuble clearly ruled out retroactive recapitalization of Greek banks during German budget committee session; Schaeuble estimated financing hole in current Greek programme at 4 billion to 4.5 billion euros.’

[B]Data to be released on Tuesday :[/B]

Australia retail sales, RBA rate decision, China non-manufacturing PMI, U.K. retail sales, PMI construction, Swiss GDP, EU PPI, U.S. manufacturing PMI, construction spending, ISM manufacturing.