yen plunges on easing bets
The euro gained against the dollar and struck a 5 1/2 month high against the yen on Monday as regional elections in Spain over the weekend removed a Canada Goose sale potential obstacle for the country prime minister to request a bailout.
The euro, up about 1.6 percent against the dollar so Canada Goose Coats canada goose outlet On Sale far in October, gained uk canada goose outlet support from comments by European Central Bank Canada Goose jacketstock Jackets policymaker Joerg Asmussen who reiterated the bank commitment to do everything in its Canada Goose online power to show the euro is irreversible.
Spanish Prime Minister Mariano Rajoy People Party secured victory in his home region of Galicia, boosting his austerity drive.
short, the Canada Goose Parka strong showing in Galicia indicates that Rajoy may now have the Canada Goose Outlet political capital to canada goose coats make a formal appeal for a bailout canada goose uk black friday which would be viewed positively by the market, said Boris cheap Canada Goose Schlossberg, managing director of FX strategy canada goose clearance sale at BK Asset Management in New York.
Prime Minister Rajoy, however, faces another test on Nov. 25 when the economically powerful Catalonia canada goose coats on sale holds canada goose uk outlet its regional elections.
For now, the market is relieved that Spain remains relatively unified and that Prime Minister Rajoy canada goose uk shop can proceed with plans for stabilizing the country economy, Schlossberg said.
The euro last traded at $1.3048, up 0.3 percent, with resistance expected around $1.3139, canada goose black friday sale the Oct. 17 high. Traders reported talk of a large $1.3050 options expiry that could keep it pinned close to that level.
Expectations that Spain will apply for a bailout, prompting the European Central Bank to start buying its bonds, have helped support canada goose the euro in recent weeks, although uncertainty over the timing of such a move was also seen limiting gains.
lack of negative news out of Europe should help the canada goose factory sale euro for the moment at least, said Canada Goose Online Richard Falkenhall, currency strategist at SEB in Stockholm. presidential election and the country looming cliff of budget cuts buy canada goose jacket and tax hikes could switch the market attention towards the United States and away uk canada goose from the euro zone.
YEN PLUNGES The yen fell broadly after data showing Japan exports tumbled in September added to growing expectations of more policy buy canada goose jacket cheap stimulus from the Bank of Japan when it meets next week.
The euro rose more than 1 percent versus the yen to a 5 1/2 month high of 104.40 yen. It last traded at canada goose clearance 104.18, up 0.9 percent on the day.
The dollar hit a peak of 79.86 yen, its strongest since mid July, gaining momentum after breaching resistance at canadian goose jacket its 200 day moving average around 76.42 yen. It last traded at 79.82, up 0.7 percent on the day, according to Reuters data.
Strategists said the cheap canada goose uk yen could rebound strongly next week if the Bank of Japan disappoints expectations and keeps policy on hold. Societe Generale analyst Sebastien Galy recommended paring long canada goose store dollar/yen positions and maintaining a strategy of buying the dollar on dips. dollars, leaving the Canadian unit vulnerable to profit taking.