Japanese Yen Falls On Fed Led Optimism
August 30 2021 - 3:58AM
RTTF2
The Japanese yen slipped against its most major counterparts in
the European session on Monday, as investors cheered Fed Chair
Jerome Powell's remarks that a reduction in bond purchases will be
gradual.
Powell said that the Fed will closely monitor incoming data and
the evolving risks from the virus crisis while making a decision on
QE taper.
The Fed Chair noted that substantial further progress towards
employment goal is needed to withdraw support.
All important U.S. jobs data due on Friday could help assess the
strength of the labor market.
Data from the Ministry of Economy, Trade and Industry showed
that Japan's retail sales grew for the fifth straight month in
July.
Retail sales grew 2.4 percent year-on-year in July, faster than
the 0.1 percent increase seen in June. This was the fifth
consecutive rise in retail sales and also exceeded the economists'
forecast of 2.1 percent.
The yen retreated to 109.87 against the greenback, off a 5-day
high of 109.70 seen in the previous session. On the downside,
112.00 is likely seen as its next support level.
The yen fell to 129.67 against the euro, 151.27 against the
pound and 87.16 against the loonie, after rising to 129.49, 150.95
and 86.89, respectively earlier in the trading session. If the
currency falls further, 131.5, 153.00 and 89.00 are possibly seen
as its next support levels against the euro, the pound and the
loonie, respectively.
In contrast, the yen rose to 76.71 against the kiwi and 79.98
versus the aussie, from its early low of 77.07 and a 2-week low of
80.38, respectively. The currency is likely to find resistance
around 75.00 against the kiwi and 78.00 versus the aussie.
The yen appreciated to 119.94 against the Swiss franc, from more
than a 3-week low of 120.61 seen in early trades. The yen is seen
finding resistance around the 115.00 level.
Looking ahead, German preliminary CPI for August is scheduled
for release at 8:00 am ET.
U.S. pending home sales for July will be released in the New
York session.
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