Yen Falls On Trade Optimism
September 27 2019 - 5:31AM
RTTF2
The Japanese yen slipped against its major counterparts in the
European session on Friday amid risk appetite, as investors looked
forward to the next round of U.S.-China talks scheduled for
October.
Top level talks are set to begin in Washington on October, in a
sign of easing tensions between Washington and Beijing.
Chinese Vice-Premier Liu He will meet US delegation represented
by Trade Representative Robert Lighthizer and Treasury Secretary
Steven Mnuchin.
Data from the Ministry of Internal Affairs and Communications
showed that Tokyo consumer prices rose just 0.4 percent on year in
September.
That was shy of expectations for an increase of 0.5 percent and
down from 0.6 percent in August.
The currency traded mixed against its major counterparts in the
Asian session. While it held steady against the greenback and the
pound, it rose against the euro and the franc.
The yen declined to 8-day lows of 108.17 against the greenback
and 81.61 against the loonie, off its previous highs of 107.66 and
81.11, respectively. The currency is likely to find support around
111.00 against the greenback and 83.5 against the loonie.
The yen fell to 2-day lows of 73.07 against the franc and 73.07
against the aussie, from its early highs of 108.30 and 72.62,
respectively. If the yen slides further, it may find support around
111.00 against the franc and 76.5 against the aussie.
The Japanese currency dropped to a 3-day low of 118.27 against
the euro, reversing from a new 3-week high 117.45. On the downside,
122.00 is possibly seen as the next support level for the yen.
Survey data from the European Commission showed that Eurozone's
economic sentiment weakened more-than-expected in September to its
lowest level in over four-and-a-half years, largely due to the
persistent weakness in manufacturing, while the morale improved
slightly in services.
The economic sentiment index fell to 101.7 from 103.1 in August,
marking the lowest reading since February 2015, when it was
100.9.
The yen slipped to 68.06 against the kiwi and 133.21 against the
pound, coming off from its prior high of 67.66 and a new 2-week
high of 132.32, respectively. The next possible support for the yen
is seen around 71.6 against the kiwi and 136.5 against the
pound.
Looking ahead, the University of Michigan's consumer sentiment
index for September is due at 10:00 am ET.
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