Exchange rates and converters

The dollar came under broader pressure. EUR-USD worked higher, to the 1.1350 area despite a -0.6% y/y reading in Eurozone HICP in preliminary January data. A dip in Eurozone unemployment to 11.4% from 11.5% helped offset, while the market is also aware that the ECB's QE program, designed to eradicate deflation, doesn't commence until March. 'Grexit' concerns have come off the boil with the new Greek government pledging to look for common ground with the Troika. USD-JPY has ebbed toward the lower part of the range that's been seen over the last 10-days in dipping to the 117.50 area.

EUR-USD has traded a narrow path in Asia, holding in the low-to-mid 1.13s and remaining well within yesterday's range. 'Grexit' concerns have come off the boil with the new Greek government pledging to look for common ground with the Troika. Focus now is on Eurozone CPI data. USD-JPY remains on a broadly sideways path, anchored on 118.00, which has roughly been the mid-point of trade for most of January so far.

The dollar rallied broadly in N.Y. trade on Thursday, though it was the commodity bloc that was hit the hardest. Oil and copper prices hit new trend lows, which saw USD-CAD rally to multi-year highs of 1.2650, and AUD-USD sink to multi-year lows under 0.7240. USD-JPY moved up to near 118.50 on relatively stable yields and a moderate Wall Street Rally. EUR-USD gave back the 1.13 handle, touching 1.1279 lows, as cable skidded along just above 1.5020. On the economic front, weekly jobless claims fell to trend lows, though pending home sales missed the mark.

[EUR, USD]

The USD traded firmer while the CAD, AUD and NZD came under pressure after the RBNZ shift from a hawkish to a neutral bias and warned that the kiwi is overvalued. An article in the Australian newspaper also reckoned that an RBA rate cut on Feb-3 is "almost certain," while copper, gold and other commodity prices were soft today. AUD-USD dipped under 0.7800 for the first time since mid-2009. USD-CAD clocked a new trend high at 1.2554, which is the eighth consecutive day that the pair has done so with markets betting there'll be a follow-up rate cut by the BoC.