XE Market Analysis: Asia – Oct 06, 2015

The dollar faded through the U.S. session on Tuesday, as risk taking levels fell off, and as a sharply wider August trade deficit took some wind out of dollar bull’s sails. In addition, it appears the FX market continues to play down hopes for a Fed rate hike this year. This said, with Japan and Europe seemingly on further easing paths, dollar downside may be limited going forward. EUR-USD rallied from the 1.1200 level at the open to highs of 1.1274, as USD-JPY eased back from near 120.50 to 120.14 lows.