Yen Falls Amid Risk Appetite
June 11 2019 - 12:32AM
RTTF2
The Japanese yen fell against its major counterparts in the
early European deals on Tuesday, as European shares rose, tracking
positive cues from Asia and Wall Street, after the U.S. and Mexico
struck a deal to avoid tariffs being implemented.
Investors shrugged off news that U.S. President Donald Trump has
threatened to impose new tariffs on China if his counterpart Xi
Jinping does not attend the upcoming G-20 meeting in Japan later
this month.
Trump also warned Mexico that tariffs will be reinstated if the
country's legislative body does not approve an unrevealed, but
"very important" part of the U.S.-Mexico deal.
In economic news, the Bank of Japan said that the M2 money stock
in Japan was up 2.7 percent on year in May, coming in at 1,029.8
trillion yen. That follows the downwardly revised 2.5 percent
increase in April.
The M3 money stock advanced an annual 2.3 percent to 1,361.7
trillion yen following the 2.2 percent gain in the previous
month.
The yen declined to a 1-1/2-month low of 109.76 against the
franc and near a 3-week low of 123.03 against the euro, from its
early high of 109.49 and a session's high of 122.63, respectively.
On the downside, 111.00 and 125.00 are possibly seen as the next
support levels for the yen against the franc and the euro,
respectively.
The yen reversed from its early highs of 108.35 against the
greenback and 137.50 against the pound, falling to 108.67 and
137.96, respectively. The currency is likely to target support
around 111.00 against the greenback and 141.00 against the
pound.
The Japanese currency hit near a 3-week low of 81.97 against the
loonie, off its early high of 81.67. The currency is seen finding
support around the 83.5 region.
In contrast, the yen climbed to a 6-day high of 71.53 against
the kiwi and held steady thereafter. If the yen rises further, it
may find resistance around the 69.00 level.
The yen rose back to 75.44 against the aussie, heading closer to
pierce a 5-day high of 75.40 touched at 8:15 am ET. The next
possible resistance for the yen is seen around the 73.5 region.
Looking ahead, Eurozone Sentix investor confidence index for
June and ILO jobless rate in three months to April are scheduled
for release in the European session.
The U.S. producer prices for May are due in the New York
session.
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