Yen Slides After BoJ Kuroda's Comments
18 Ottobre 2018 - 9:53AM
RTTF2
The Japanese yen slipped against its most major counterparts in
the European session on Thursday, after the Bank of Japan Governor
Haruhiko Kuroda offered an upbeat view on Japanese economy and
continued to back low rate strategy to attain inflation goal.
"Japan's economy is expected to continue expanding moderately,"
Kuroda said at meeting with regional branch managers.
Short- and long-term interest rates will be kept at their
current "very low" levels for a longer period, he said, adding that
the central bank would only make necessary policy adjustments to
sustain the economy's momentum to achieve the price target.
European shares were mixed amid a flurry of earnings and as the
EU leaders decided to take more time to clinch a divorce deal at a
crunch summit in Brussels.
Investors digested developments over Brexit talks, as Prime
Minister Theresa May assured that the U.K. would work "intensively
over the next days and weeks" to get a deal on separation.
Data from the Ministry of Finance showed that Japan posted a
merchandise trade surplus of 139.6 billion yen in September.
That exceeded expectations for a deficit of 45.1 billion yen
following the 444.6 billion yen shortfall in August.
Exports were down 1.2 percent on year, while imports advanced
7.0 percent.
The yen showed mixed trading against its major counterparts in
the Asian session. While it fell against the greenback, it climbed
against the euro, the franc and the pound.
The yen retreated to 147.75 against the pound and 113.46 against
the franc, from its early highs of 147.09 and 112.93, respectively.
On the downside, 150.00 and 115.00 are likely seen as the next
support levels for the yen against the pound and the franc,
respectively.
Having climbed to more than a 5-week high of 129.12 against the
euro at 2:15 am ET, the yen reversed direction and eased to 129.73.
The yen is likely to find support around the 131.00 level.
Data from Destatis showed that Germany's wholesale prices rose
at a slower pace in September.
Wholesale price inflation slowed to 3.5 percent from 3.8 percent
in August.
The yen declined to an 8-day low of 80.45 versus the aussie,
after rising to 80.00 at 7:00 pm ET. The yen is seen finding
support around the 82.00 level.
The yen reversed from an early 2-day high of 73.56 against the
kiwi, falling to 73.99. If the yen slides further, 82.00 is likely
seen as its next support level.
On the flip side, the yen held steady at 112.46 against the
greenback, after having recovered from an 8-day low of 112.73 hit
at 8:45 pm ET. At yesterday's close, the pair was worth 112.64.
The yen advanced to a 2-day high of 86.14 against the loonie
from yesterday's closing value of 86.50. The next possible
resistance for the yen is seen around the 85.00 region.
Looking ahead, U.S. weekly jobless claims for the week ended
October 6 and leading index for September are scheduled for release
in the New York session.
At 12:15 pm ET, Federal Reserve Governor Randal Quarles speaks
about the economic outlook at the Economic Club of New York
luncheon.
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