U.S. Dollar, Japanese Yen Strengthen On Global Growth Concerns
July 19 2021 - 4:01AM
RTTF2
The U.S. dollar and the Japanese yen climbed against their major
counterparts in the European session on Monday amid risk aversion,
as a surge in coronavirus infections in many countries triggered
worries about a slowdown in global economic growth.
United States surgeon general Vivek Murthy cautioned that most
coronavirus-related deaths are among the unvaccinated people.
His comments came as U.S. infections soared 70 percent over the
last week and deaths rose 26 percent amid a resurgence of the virus
in parts of the country with low vaccination rates.
The U.K. reported 48,161 new cases on Sunday, with worries about
the continued spread of the Delta variant offsetting reopening
optimism.
Oil prices declined after OPEC and its allies had reached a deal
to lift output from August to support a global economic recovery
from crisis.
Japan's government retained its economic assessment for the
second straight month in July, according to the monthly report
released by the Cabinet Office.
The Japanese economy showed weakness in some components further,
although it remains in picking up in a severe situation due to the
Novel Coronavirus.
The yen advanced to more than a 5-month high of 80.65 against
the aussie, 10-day highs of 76.30 against the kiwi and 109.70
against the greenback, off its early lows of 81.47, 77.08 and
110.10, respectively. The next possible resistance for the yen is
seen around 78.00 against the aussie, 74.00 against the kiwi and
108 against the greenback.
Reversing from its prior lows of 129.97 against the euro and
119.70 against the franc, the yen rose to a 3-1/2-month high of
129.09 and near a 2-week high of 119.01, respectively. If the yen
climbs further, 126 and 116.00 are likely seen as its next
resistance levels against the euro and the franc, respectively.
The yen firmed to near 3-month highs of 150.33 against the pound
and 85.68 against the loonie, after falling to 151.57 and 87.28,
respectively in early deals. The yen is seen finding resistance
around 145.00 against the pound and 84.00 against the loonie.
The greenback spiked up to near a 2-week high of 0.9222 against
the franc, 3-1/2-month high of 1.1765 against the euro and more
than a 3-month high of 1.3700 against the pound, from its prior
lows of 0.9184, 1.1814 and 1.3774, respectively. Next key
resistance for the dollar is seen around 0.94 against the franc,
1.15 against the euro and 1.34 against the pound.
The greenback rebounded from its early lows of 1.2603 against
the loonie, 0.7403 against the aussie and 0.7004 against the kiwi,
climbing to a 5-1/2-month high of 1.2808, 7-1/2-month high of
0.7344 and a 5-day high of 0.6945, respectively. The greenback is
poised to challenge resistance around 1.32 against the loonie, 0.70
against the aussie and 0.68 against the kiwi.
Looking ahead, U.S. NAHB housing market index for July is
scheduled for release in the New York session.
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