Yen Advances As Sentiment Sours On Political Problems In Yemen
March 26 2015 - 4:41AM
RTTF2
The Japanese yen climbed against its major counterparts in late
Asian deals on Thursday, as demand for safe-haven assets improved
after Saudi Arabia began air strikes in Yemen against Houthi
fighters, who are trying to intensify their grip on the port city
of Aden.
Adel al-Jubeir, the Saudi ambassador, said the attack "in
response to request from the legitimate Yemen government" and the
operation is "designed to protect the people of Yemen and its
legitimate government from a takeover by the Houthis".
Reports said that Saudi has deployed 100 fighter jets, 150,000
soldiers and other navy units. Planes from Egypt, Morocco, Jordan,
Sudan, Kuwait, the United Arab Emirates, Qatar and Bahrain are also
joining the attack.
The military campaign after rebel forces seized parts of Aden,
the country's second largest city, and a nearby air base. Yemeni
President Abed Rabbo Mansour Hadi reportedly abandoned the country,
leaving on a boat from the southern port of Aden.
Soft U.S. economic data released overnight also dented
sentiment. U.S. jobless claims and services PMI reports are due
today, which may give more insights about the economy.
The yen drifted higher to 118.53 against the U.S. dollar for the
first time since February 20. The next possible resistance for the
yen may be located around the 118.00 zone.
The yen advanced to a 3-day high of 130.16 against the euro,
while approaching 176.47 against the pound, a new 7-week high. If
the yen extends rise, it may find resistance around 128.00 against
the euro and 175.00 against the pound.
The yen appreciated to a 2-day high of 123.63 versus the pound,
6-day highs of 95.06 against the loonie, 89.94 against the NZ
dollar and 92.78 against the aussie. On the upside, the yen may
find resistance around 173.00 against the pound, 94.00 against the
loonie, 87.5 against the kiwi and 90.00 against the aussie.
Looking ahead, Swiss KOF Spring economic forecast and Eurozone
M3 money supply and U.K. retail sales- both for February are due to
be released shortly.
At 4:35 am ET, U.S. Federal Reserve Bank of St. Louis President
James Bullard is expected to give OMFIF Public Lecture on the
economy and monetary policy in Frankfurt.
In the New York session, U.S. weekly jobless claims for the week
ended March 21 and Markit's U.S. PMI reports for March are slated
for release.
At 9:00 am ET, U.S. Federal Reserve Bank of Atlanta President
Dennis Lockhart will deliver a speech about the economic outlook
and monetary policy at the Engage International Investment
Education Symposium, in Detroit.
Subsequently, European Central Bank president Mario Draghi will
address the Italian parliament's finance and EU policy committees
in Rome at 9:15 am ET. After 15 minutes, Bank of Canada Governor
Stephen Poloz is expected to speak at the Canada-UK Chamber of
Commerce, in London.
At 1:30 pm ET, Bank of England Governor Mark Carney will hold a
press conference about his role as Chair of the Financial Stability
Board, in Frankfurt.
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