News Column

Yen Declines Against Majors

July 1, 2014



OTTAWA (Alliance News) - The Japanese yen slipped against its key counterparts in Asian deals on Wednesday, as strong manufacturing data from the US buoyed optimism about the global economy.

The US final manufacturing PMI rose to 57.3 in June, which was the highest since May 2010, signaling a strong improvement in overall business conditions, the data from Markit economics showed on Tuesday. The index was also up from May reading of 56.4.

The Institute for Supply Management said yesterday that its purchasing managers index edged down to 55.3 in June from 55.4 in May, although a reading above 50 still indicates growth in the manufacturing sector. Economists had expected the index to inch up to 55.8.

Traders await US private sector employment data due later in the day, ahead of key nonfarm payrolls data tomorrow.

On the economic front, the monetary base in Japan surged 42.6% on year in June to 233.246 trillion yen, the Bank of Japan said on Wednesday. That follows the 45.6% spike in May.

Seasonally adjusted, the monetary base climbed 40.0% to 226.751 trillion yen. For the second quarter, the monetary base jumped 45.5% on year, while the adjusted base added 26.4%.

The yen fell to a 5-day low of 101.64 against the greenback from Tuesday's closing quote of 101.51. If the yen extends slide, 102.2 is seen as next support level.

The yen slipped to 174.30 against the pound, a level unseen in 2014. The pair finished Tuesday's trading at 174.07. The next possible downside target for the yen lies around the 175.00 mark.

The yen that ended Tuesday's trading at 114.33 against the franc and 138.85 against the euro dropped to 114.48 and 139.02, respectively. Next key downside target for the yen is seen around 115.00 against the franc and 140.00 against the euro.

The yen slipped to 95.53 against the Canadian dollar, its lowest since January 20. The yen is poised to test support around the 96.00 zone. The pair was worth 95.45 at yesterday's close

Looking ahead, the UK Nationwide house prices and construction PMI for June and Eurozone PPI for May are due in the European session.

The US ADP employment data for June and factory orders for May are set for release in the New York session.



For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Alliance News


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters