News Column

Yen Slides After Japan Corporate Service Prices Surge

May 26, 2014



CANBERA (Alliance News) - The yen weakened against the other major currencies in the early Asian session on Tuesday and held steady thereafter following following the release of a report showing a surge in corporate service prices in April.

Corporate service prices in Japan were up 3.4% on year in April, the Bank of Japan revealed today - following the 0.7% increase in March.

Among the individual components of the survey, prices were higher for communication, leasing, transportation, engineering and motor vehicle repair.

On a monthly basis, corporate service prices jumped 2.4% after adding 0.7% in the previous month.

Excluding the consumption tax hike that was enacted in April, corporate service prices were up an annual 0.8%.

The yen fell to nearly a 3-week low of 94.06 against the Canadian dollar, from yesterday's closing quote of 93.86 and held steady thereafter.

The yen fell to nearly 2-week lows of 139.37 against the euro, 171.97 against the pound and 114.08 against the Swiss franc, from yesterday's closing quotes of 139.09, 171.68 and 113.93, respectively. Thereafter, the yen held steady against both pairs.

Against the Australian dollar and NZ dollar, the yen fell to 1-week lows of 94.46 and 87.44, from yesterday's closing values of 94.15 and 87.14, respectively and held steady thereafter.

The yen fell to 101.98 against the US dollar in the early Asian session and held steady thereafter.

Looking ahead, Japan small business sentiment data for May is due in the late Asian session.

Swiss trade data for April is set to be released at 2:00 am ET.

U.K'sBritish Bankers Association's Loans for House purchase data for April is due in the early European session.

US Durable goods orders for April and Markit's PMI data, Conference Board's consumer confidence data and Richmond manufacturing index for May are set to be released in the New York session.

ECB President Mario Draghi's armchair discussion is scheduled in Sintra at Portugal at 9:30 am ET.



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Source: Alliance News


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