|02:35 EDT||FX Update: EUR-USD continued to make time in the 1.11s |
FX Update: EUR-USD continued to make time in the 1.11s after dipping to a one-week low at 1.1130 on Monday. Yesterday's statement from the Eurogroup reported progress in bailout negotiations with Greece, but said that more time and effort are needed to bridge the gaps. Elsewhere, USD-JPY rose to a one-week high of 120.28, and EUR-JPY and other yen crosses also gained. BoJ Governor Kuroda said today that the central bank is not thinking of cutting interest on excess reserves. Sterling continued its post-election outperformance. Cable hit its highest level since Dec-13 in making 1.5613, since settling in the upper-1.55s. EUR-GBP hit a two-week low at 0.7141, reversing sharping from the pre-election peak at 0.7486. The election result is a relief for markets, while tomorrow's monthly labour market report is expected to should show both the claimant count and unemployment rates falling to new cycle lows. Weakness in the UK BRC April retail sales report was downplayed as a consequence of the timing of Easter this year. AUD-USD logged a two-day high at 0.7940, aided by a strong Australian home loans data, and after Fitch ratings stated, "There is still little evidence to suggest Australia's AAA rating will come under threat over our usual rating horizon of about two years."