EUR/USD had a strong bullish day while GBP/USD remains above the ascending trendline and the U.S. dollar is traded soft ahead of the U.S. CPI report. USD/JPY is creating the third negative day due to BoJ Governor Kuroda’s comments; further losses are expected.
Euro Higher Without Specific Market Driver News
The single currency strengthened severely against the G10 currencies on Tuesday and early Wednesday, on the back of the overall positive economic indicators from the Euro area. The preliminary figure for the third quarter’s GDP showed a stable expansion of the economy of 2.5% year-over-year. The ZEW survey showed that the economic sentiment in the Euro area increased to 30.9 in November from seventh month low of 26.7 in October.
Japanese Yen Picked Up Sharply From BoJ Kuroda’s Speech
The Japanese yen increased sharply against the U.S. dollar following the speech of the Bank of Japan Governor Haruhiko Kuroda and taking advantage of the weak dollar. Kuroda supported the extremely accommodative monetary policy applied by the central bank, as he believes that helped the economy to push its inflation near central bank’s 2% target. In addition, he mentioned that they will keep the stimulus measures for longer in order to avoid keep cutting these positive developments of the economy.
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