Yen Rises Amid Risk Aversion
05 Aprile 2024 - 5:51AM
RTTF2
The Japanese yen strengthened against other major currencies in
the Asian session on Friday, as Asian stocks traded lower following
the sell-off on Wall Street overnight, on renewed concerns over the
outlook for interest rates, with the likelihood of a rate cut in
June remaining uncertain. Higher energy prices will keep inflation
elevated and convince the U.S. Fed to hold off on lowering interest
rates.
In latest remarks, Minneapolis Fed President Neel Kashkari
stated on Thursday that should inflation persistently stall, there
may be no necessity for rate cuts.
CME Group's FedWatch Tool is still indicating a 66.4 percent
chance the Fed will cut rates by a quarter point in June, but a
32.2 percent chance rates will remain unchanged.
In economic news, data from the Ministry of Internal Affairs and
Communications showed that the average household spending in Japan
was down 0.5 percent on year in February, standing at 279,868 yen.
That beat expectations for a decline of 2.8 percent following the
6.3 percent slide in January.
On a monthly basis, household spending rose 1.4 percent - again
exceeding expectations for a gain of 0.5 percent after slumping 2.1
percent a month earlier.
Data from the Cabinet Office showed that Japan's leading index
improved in February to the highest level in one-and-a-half years.
The leading index, which measures future economic activity, rose
more-than-expected to 111.8 in February from 109.5 in the previous
month. The score was forecast to increase to 111.6.
In the Asian trading today, the yen rose to 2-day highs of
163.49 against the euro and 190.68 against the pound, from
yesterday's closing quotes of 163.97 and 191.28, respectively. If
the yen extends its uptrend, it is likely to find resistance around
162.00 against the euro and 189.00 against the pound.
Against the U.S. and the Canadian dollars, the yen advanced to
more than a 2-week high of 150.81 and an 8-day high of 111.28 from
Thursday's closing quotes of 151.33 and 111.72, respectively. The
yen may test resistance near 147.00 against the greenback and
109.00 against the loonie.
The yen edged up to 167.28 against the Swiss franc, from
yesterday's closing value of 167.86. On the upside, 164.00 is seen
as the next resistance level for the yen.
Against the Australia and the New Zealand dollars, the yen
climbed to 2-day highs of 99.20 and 90.81 from yesterday's closing
quotes of 99.68 abd 91.16, respectively. The next possible upside
target level for the yen is seen around 97.00 against the aussie
and 89.00 against the kiwi.
Looking ahead, U.K. S&P construction PMI for March and
Eurozone retail sales data for February are due to be released in
the European session.
In the New York session, Canada and U.S. jobs data for March,
U.S. used car prices for March, Canada Ivey PMI for March and U.S.
Baker Hughes oil rig count data are slated for release.
At 9:15 am ET, LINTHICUM Heights, Md. - Federal Reserve Bank of
Richmond President Thomas Barkin is scheduled to speak before the
Greater Baltimore Committee "Pulse Check: The Scorecard Summit
2024," in Linthicum, Maryland, U.S.
At 12:15 pm ET, Federal Reserve Board Governor Michelle Bowman
will speak on "Risks and Uncertainty in Monetary Policy: Current
& Past Considerations" before the Shadow Open Market Committee
Spring Meeting, in New York, U.S.
Grafico Cross Sterling vs Yen (FX:GBPJPY)
Da Ago 2024 a Set 2024
Grafico Cross Sterling vs Yen (FX:GBPJPY)
Da Set 2023 a Set 2024