Yen Falls Against Majors
08:32, 23rd October 2014
(RTTNews) - The Japanese yen slipped against its major opponents in European deals on Thursday, as a solid PMI reports of both Germany and Eurozone, along with an uptick in Chinese manufacturing activity in October reduced fears about global growth.
The Eurozone private sector logged a marginal upturn in growth in October, with composite PMI showing a score of 52.2. The score was forecast to fall to 51.5.
In Germany, manufacturing growth picked up to 51.8 in October, with the pace of expansion the fastest in three months.
The latest survey from HSBC Bank showed that China's manufacturing sector expanded to 50.4 in October. This marks a three-month high and was also up from September reading of 50.2.
Japan's manufacturing sector expanded at an accelerated pace in October with a flash PMI score of 52.8, the latest survey from Markit Economics revealed early in the day.
That follows the reading of 51.7 in September.
Japan should continue with its tax hike plan to maintain credibility of fiscal framework, said Roberto Guimaraes-Filho, deputy division chief of the Regional Studies Division at the IMF's Asia Pacific Department.
Japan's economy is forecast to grow by an annualized 3.4 percent in July-September period, the official told at a seminar.
The yen reversed from an early high of 107.10 against the greenback, falling to near a 2-week low of 107.64. The next possible downside target for the yen is seen around the 109.00 zone.
The yen hit 2-day lows of 113.01 against franc and 136.37 against the euro, off early weekly highs of 112.11 and 135.20, respectively. If the yen extends slide, 137.5 against the euro and 113.5 against the franc may be found as its next support levels.
The yen slipped to 94.72 against the aussie, which is its lowest since October 9, from a prior high of 93.79. Against the loonie, the yen came off from an early high of 95.14 and slipped to a 10-day low of 96.00. The yen is likely to find support around 95.5 against the aussie and 96.5 against the loonie.
The yen that rose to a 6-day high of 83.95 against the NZ dollar in early Asian deals reversed direction and eased to 84.64. Extension of downtrend may take the yen to a support around the 86.00 region.
The yen fell back to 172.58 against the pound, after rising to 171.69 at 3:15 am ET. Next key support for the yen is likely seen around the 173.00 mark.
Looking ahead, U.S. weekly jobless claims for the week ended October 18, house price index for August, leading indicator for September and flash manufacturing PMI for October are due in the New York session.
At 10:00 am ET, Eurozone flash consumer sentiment index for October is due.
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