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Forex pairs in this Article » USD/JPY (Lisbon) - Risk sentiment was helped in the overnight session following Obama’s speech last night in which he confirmed the Congressional votes on military action would be postponed whilst diplomacy, i.e. Russia’s proposal to put Syria’s chemical weapons under international control, is pursued, notes Jonathan Pryor, Corporate Treasurer at Investec.

Key quotes

“So whilst the US has not abandoned talk of a military strike altogether, such action now looks further away. The changing sentiment was reflected in the equity and currency markets as an equity rally overnight eroded demand for the Japanese Yen as a safe haven, leaving the Yen trading at its lowest levels against the dollar in almost two months.”

“Ahead of a packed afternoon schedule of US data releases on Friday, Fed official William Dudley speaks tomorrow and the markets will look to gain insight to the scale of the much anticipated Fed taper expected to be announced next week.”
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