Japanese Yen Drops On Rising Risk Appetite
The Japanese yen fell against its major counterparts in the
Asian session on Friday, amid rising risk appetite on the back of
strong GDP data from the U.S. and earnings results from Apple.
Apple reported first-quarter results on Thursday, with both
earnings and revenues beating estimates, driven by strong demand
for its latest iPhone 13 and other services.
Overnight data showed that the U.S. economy expanded at its
fastest pace in nearly four decades in the fourth quarter.
Data from the Commerce Department showed that the GDP grew by
6.9 percent in the fourth quarter of 2021 from 2.3 percent in the
The U.S. treasury yield curve flattened as shorter-term yields
rose on expectations that the Fed is likely to raise rates four or
five times this year.
Data from the Ministry of Internal Affairs and Communications
showed that Tokyo inflation rose 0.5 percent on year in
That was shy of expectations for an increase of 0.6 percent and
was down from 0.8 percent in December.
The yen weakened to 128.80 against the euro and 124.16 against
the franc, off its early highs of 128.42 and 123.77, respectively.
The yen may face support around 131.5 against the euro and 126.00
against the franc.
The yen edged down to 90.81 against the loonie, 81.34 against
the aussie and 76.06 against the kiwi, down from its prior highs of
90.44, 81.02 and 75.80, respectively. The currency is likely to
face support around 92.00 against the loonie, 84.00 against the
aussie and 78.00 against the kiwi.
The yen dropped to a 1-week low of 154.89 against the pound and
more than a 2-week low of 115.64 against the greenback, from its
early highs of 154.20 and 115.26, respectively. The yen is seen
challenging support around 157.00 against the pound and 120.00
against the greenback.
Looking ahead, German flash GDP data for the fourth quarter,
Swiss KOF leading indicator and Eurozone economic confidence index
for January will be published in the European session.
U.S. personal income and spending data for December and
University of Michigan's final consumer sentiment index for January
will be featured in the New York session.
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