Euro scales 16-year peak against yen
Euro rallied in Asian trade on Thursday against the yen, extending gains for the fifth straight session, and hitting 16-year highs after trading above 166 yen for the first time since 2008.
The yen is suffering from the persistent interest rate gap between Europe and Japan, which will likely remain fixed for an extended duration.
EUR/JPY
EUR/JPY rose 0.5% to 155.99 yen, the highest since 2008, with a session-low at 165.66.
The pair rose 0.3% yesterday, the fourth profit in a row after surpassing the psychological barrier of 165 yen.
Selloff
The yen is facing a heavy selloff amid mounting doubts about whether Japanese authorities will intervene to support the local currency.
Interest Rate Gap
The current Japan-Eurozone interest rate stands at 440 basis points in favor of the eurozone, and could potentially carry on like that for some time as the odds of an early ECB interest rate cut in June declined.
The Bank of Japan on the other hand isn’t likely to enact any more interest rate hikes this year.
Japanese Rates
The Bank of Japan raised interest rates for the first time in 17 years in March, however it signaled there were no plans for any further hikes this year.
Ethereum tumbles by 2% as risk appetite softens
Most cryptocurrencies declined on Wednesday amid a weakening risk appetite ahead of important US data.
Earlier US data showed durable goods orders rose 2.6% last month.
Now investors await crucial US GDP growth data tomorrow, estimated at 2.3% in the first quarter.
On Friday, US personal spending data will be released, expected to rise by 0.3% in March.
NNow investors are focused on corporate earnings results, especially tech companies, with Tesla reporting disappointing results yesterday.
Ethereum
Ethereum fell 2.5% as of 20:51 GMT at CoinMarketCap to $3125.3.
Oil prices lost ground despite large US inventory drawdown
Oil prices fell on Wednesday despite earlier official data that showed a steep decline in US crude stocks last week.
US crude stocks fell 6.4 million barrels last week to 453.6 million barrels, while analysts expected a drop of 2.1 million barrels.
Gasoline stocks fell 0.6 million barrels to 226.7 million barrels, as distillate stocks fell by 1.6 million barrels to 116.6 million barrels.
On trading, Brent June futures fell 0.45%, or 40 cents to $88.02 a barrel.
US crude June futures fell 0.65%, or 55 cents to $82.81 a barrel.
US crude stocks fall more than expected
The Energy Information Administration reported a drop of 6.4 million barrels in US crude stocks last week to 453.6 million barrels, while analysts expected a drop of 2.1 million barrels.
Gasoline stocks fell 0.6 million barrels to 226.7 million barrels, as distillate stocks rose by 1.6 million barrels to 116.6 million barrels.