Yen Sells Off on Sugimoto Comments (Morning Slices)

MORNING SLICES

Fundys – A quiet overnight session of trade on the data front, with the only key release coming from the Eurozone in the form of the trade deficit, which managed to come in better than expected. However the data was somewhat misleading with exports still showing a significant deterioration. This helped to weighed on the Euro, while traders were still focused on the previous week’s unimpressive GDP results and more downbeat comments from officials in the region. ECB Tumpel-Gurgell said that the central bank needed to do everything it could to restore power, while ECB Weber noted that monetary policy was becoming increasingly ineffective. ECB Nowotny was also in the news saying that he expected the ECB to revise down its forecasts for June. Elsewhere, Japanese Finance Minister Sugimoto warned that the MOF was watching FX closely and did not want to have currency appreciation to have a negative impact on the economy.

Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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