FOREX-Yen still vulnerable; focus shifts to ECB meeting

Wed Dec 4, 2013 6:41pm EST
 
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* Yen holding off five-year trough vs euro

* Euro in slim range vs USD ahead of ECB policy decision

* Markets also cautious as U.S. payrolls loom

By Ian Chua

SYDNEY, Dec 5 (Reuters) - The yen held off a five-year trough on the euro and a six-month low versus the dollar on Thursday following a whippy session overnight that lacked conviction as key event risks including U.S. jobs data loomed.

The dollar bought 102.39 yen, having earlier this week risen as high as 103.38, while the euro traded at 139.06 , not far from a five-year peak of 140.03 scaled on Tuesday.

Traders said the downtrend in the yen remained intact thanks to the Bank of Japan's ultra-loose monetary policy and expectations that it will provide even more stimulus next year.

For now though, the focus is on the European Central Bank and Bank of England, a day after the Bank of Canada (BOC) held interest rates steady and sounded slightly more dovish in its outlook.

The Canadian dollar touched a 3-1/2 year low versus the dollar at C$1.0708, before steadying at C$1.0675.   Continued...