Dollar buying dominated in the London market, with USD/JPY approaching ¥158. Meanwhile, lower oil prices provided little support for yen appreciation, and strong dollar-buying pressure continued to drive the overall market.
Dollar buying again dominated the London market today, with USD/JPY rising from a low in the mid-¥157 range to just below ¥158. The pair's sustained strength since the Asian session brought it close to levels seen near the end of the New York session.
The more hawkish-than-expected stance signaled at last week's U.S. FOMC meeting has been cited as the driving force behind dollar buying, while yen crosses have continued to trade without a clear direction. In the options market, the yen call-over has widened.
Crude oil prices fell below the $90 level on expectations of easing tensions in the Middle East, which has helped temper the dollar-buying response in some respects. Overall, however, dollar-buying pressure remained dominant, and the yen continued to weaken. Meanwhile, EUR/USD continued to trade in the lower half of the 1.14 range.
EUR/JPY traded in a range in the lower half of the ¥180 range, while GBP/JPY remained range-bound around ¥210. Eurozone PMI improved more than expected, while the UK PMI produced a contrasting result, reflecting weakness in the services sector.