Investing.com- The U.S. dollar was higher against its most of its major rivals to start the week in Asian trading following Japan’s election results.
In Asian trading Monday, EUR/USD slid 0.05% to 1.3157 after trading as high as 1.3190 earlier in the session. The pair traded as low as 1.3154. The pair was likely to find support at 1.2929, Tuesday’s low, and resistance at 1.3190, today’s high.
The euro could continue to lose ground against the dollar in the near-term as it becomes apparent that Italian Prime Minister Mario Monti, as previously thought, will not seek reelection as Italy’s prime minister. Italy, the Eurozone’s third-largest economy, is expected to pass its budget later this week, which would likely mark the end of Monti’s reign. Media polls in Italy show Monti’s the country’s most popular elected official.
USD/JPY jumped 0.51% to 83.97 following news of Shinzo Abe’s victory in Japan’s election. Abe will become the country’s prime minister for a second time. His Liberal Democratic Party took 294 of 480 seats in Japan’s lower house of parliament spurring hopes that Abe will have a mandate to force the Bank of Japan to engage in monetary easing in order to weaken the yen.
Elections for Japan’s upper house of parliament are still seven months away, which puts pressure on Abe to weaken the yen immediately.
Elsewhere, GBP/USD lost 0.04% to 1.6165. Last week, ratings agency Standard & Poor's said it has a negative outlook on the U.K.’s AAA credit rating, meaning there is a possibility the U.K. could lose the prestigious rating. The same fate befell France earlier this year.
USD/CHF rose 0.16% to 0.9195 while USD/CAD added 0.04% to 0.9863.
The U.S. dollar was seen trading higher against its higher-yielding Australian and in New Zealand rivals. In Monday’s Asian session. AUD/USD was off 0.27% at 1.0539 while NZD/USD was lower by 0.21% at 0.8447.
The Dollar Index gained 0.11% to 79.75.
In Asian trading Monday, EUR/USD slid 0.05% to 1.3157 after trading as high as 1.3190 earlier in the session. The pair traded as low as 1.3154. The pair was likely to find support at 1.2929, Tuesday’s low, and resistance at 1.3190, today’s high.
The euro could continue to lose ground against the dollar in the near-term as it becomes apparent that Italian Prime Minister Mario Monti, as previously thought, will not seek reelection as Italy’s prime minister. Italy, the Eurozone’s third-largest economy, is expected to pass its budget later this week, which would likely mark the end of Monti’s reign. Media polls in Italy show Monti’s the country’s most popular elected official.
USD/JPY jumped 0.51% to 83.97 following news of Shinzo Abe’s victory in Japan’s election. Abe will become the country’s prime minister for a second time. His Liberal Democratic Party took 294 of 480 seats in Japan’s lower house of parliament spurring hopes that Abe will have a mandate to force the Bank of Japan to engage in monetary easing in order to weaken the yen.
Elections for Japan’s upper house of parliament are still seven months away, which puts pressure on Abe to weaken the yen immediately.
Elsewhere, GBP/USD lost 0.04% to 1.6165. Last week, ratings agency Standard & Poor's said it has a negative outlook on the U.K.’s AAA credit rating, meaning there is a possibility the U.K. could lose the prestigious rating. The same fate befell France earlier this year.
USD/CHF rose 0.16% to 0.9195 while USD/CAD added 0.04% to 0.9863.
The U.S. dollar was seen trading higher against its higher-yielding Australian and in New Zealand rivals. In Monday’s Asian session. AUD/USD was off 0.27% at 1.0539 while NZD/USD was lower by 0.21% at 0.8447.
The Dollar Index gained 0.11% to 79.75.