Euro mixed in Asian trade
FILE PHOTO
TOKYO – The euro was mixed against other currencies in Asian trade on Monday as risk appetite grew on positive US jobs data.
The euro fetched $1.2389 and 97.23 in Tokyo morning trade, against $1.2381 and 97.30 yen in New York late Friday.
The dollar bought 78.50 yen against 78.59 yen.
In early trade Monday, the euro briefly reached $1.2442, its highest level in a month, boosted by a jump in risk sentiment from better-than-expected US jobs data Friday, dealers said.
The Department of Labor said the world’s biggest economy created 163,000 jobs in July, well above the market forecast of 100,000 jobs, sending Wall Street surging.
Mansoor Mohi-uddin, UBS head of forex strategy, said the euro could climb past the $1.25 level, but the rise would be unsustainable given the likelihood of fresh policy action by the European Central Bank (ECB).
“We maintain our longer term $1.1500 target as ECB balance sheet expansion will cyclically weaken the currency again – even if structural concerns about the eurozone breaking up are reduced,” Mohi-uddin said.
Credit Suisse analyst Hiromichi Shirakawa said the upbeat US data made it less clear that the US Federal Reserve would usher in further monetary easing at a policy meeting on September 13.
“We see a rising possibility that the Federal Reserve holds off its decision on additional action until December or early next year,” he said in a note.
