Forex Market Update: GBP, AUD, CAD Extend Trend Highs, USD/JPY Advances to 95.00

The dollar remained under pressure in early Asia with GBP, AUD and CAD extending trend highs and the highest levels since the autumn of 2008. However, tempering the gains was the performance of the USD with the USD well bid against the JPY which held above 95.00, and the consistent recent failure of the EUR-USD to sustain gains above 1.4000. The USD was unable to make significant ground against most currencies however and remains under pressure. Asian stock markets were broadly higher, many hitting multi-month highs after the U.S. stock gains and strong U.S. confidence data. Oil remained firm above $62.00 and U.S. treasury yields remain near six-month highs on the Asian stock performance and increased optimism on the economic outlook. The market continues to eye the performance of the U.S. bond auctions to see whether foreign demand remains strong on the back of current USD weakness and the higher yields.