Yen Strengthens Amid Risk Aversion
November 22 2018 - 12:10AM
RTTF2
The Japanese yen climbed against its major counterparts in the
early European session on Thursday amid risk aversion, as investors
remained cautious in the wake of Brexit uncertainty and ongoing
budget standoff between Italy and Brussels.
Italy's Deputy Prime Minister Matteo Salvini remarked that the
government will not alter the budget plan and the proposed
unwinding of the existing pension system despite a rejection by the
EU Commission.
Oil prices dipped after the EIA reported a moderate build in
crude oil inventories and U.S President Donald Trump praised Saudi
Arabia for helping to lower oil prices.
Market participants also looked ahead to a crucial meeting
between Chinese President Xi Jinping and his U.S. counterpart
Donald Trump at a G20 meeting in Argentina later this month.
Data from the Ministry of Internal Affairs and Communications
showed that Japan consumer prices rose 1.4 percent on year in
October. That was in line with expectations and up from 1.2 percent
in September.
Core consumer prices, which exclude volatile food prices,
advanced an annual 1.0 percent.
The yen edged up to 112.90 against the greenback, off its early
6-day low of 113.21. The next possible resistance for the yen is
seen around the 111.00 area.
The yen recovered to 128.70 against the euro and 113.57 against
the franc, from its previous lows of 129.00 and
113.84,respectively. The yen is poised to find resistance around
127.00 against the euro and 112.00 against the franc.
The Japanese currency reversed from an early low of 144.67
against the pound, rising to 144.26. The yen is seen finding
resistance around the 142.00 level.
The yen appreciated to 81.70 against the aussie, 76.66 against
the kiwi and 85.25 against the loonie, coming off from its early
lows of 82.23 and 77.32, and a 2-day low of 85.51,respectively. On
the upside, 80.5, 75.00 and 84.00 are likely seen as the next
resistance levels for the yen against the aussie, the kiwi and the
loonie, respectively.
Looking ahead, the European Central Bank will release minutes
from the October 24-25 meeting at 7:30 am ET.
The Bank of Canada Senior Deputy Governor Carolyn Wilkins will
participate in a panel discussion titled "2-Balancing act: How
governments can manage systemic risks and maintain healthy housing
markets" at the Canada Mortgage and Housing Corporation in Ottawa
at 9:45 am ET.
At 10:00 am ET, Eurozone flash consumer sentiment index for
November will be out.
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