The safe-haven yen strengthened on Monday as investors sold stocks and riskier assets including commodities, but the dollar outperformed higher-yielding currencies on fresh talk of an interest rate hike by the Federal Reserve in the near term.
North Korea's latest nuclear test pulled cash into the perceived safety of the Japanese yen and U.S. dollar on Friday, at the end of a week that has provided little clear direction for currency investors returning from U.S. and European summer breaks.
It is going to be a very important week and a half for the Euro/British pound (EUR/GBP) currency pair. The popular currency cross has managed to bounce back after a two-week drop when traders responded to the surprisingly strong improvement in UK data.
A resurgent Dollar rattled the financial markets on Wednesday with most currencies kneeling to the greenback following the firm ADP Non-Farm employment figure of 177k which heightened hopes over the Federal Reserve raising rates in 2016.
Sterling displayed an incredible rebound during trading on Thursday with the British pound/U.S. dollar (GBP/USD) currency pair surging toward 1.3265 following August’s blockbuster manufacturing PMI of 53.3 which instantly dispelled the ongoing Brexit fueled concerns.