Japan's Minister Of Economy Comments On JPY Weakening Spark USD Selloff

The euro rose against the dollar on Monday after Japan's Minister of Economy Akira Amari said further weakening of the yen could harm Japan's economy, which sparked a greenback selloff. The Bank of Japan enacted massive monetary easing measures to steer the country away from deflationary decline and more towards growth, with the yen plunging to lows against the dollar not seen since 2008. Amari's comments sparked demand for the yen that came at the dollar's expense, and brought up the euro and other currencies with it in a quiet session with little in the way of economic indicators or other steering currents.
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GBP/USD
The pound held gains against the U.S. dollar in subdued trade on Monday, as investors locked in profits after recent upbeat U.S. economic reports sent the greenback broadly higher. The dollar strengthened broadly on Friday after data showed that U.S. consumer sentiment rose more than expected in May, climbing to an almost six year high. The University of Michigan said its consumer sentiment index jumped to 83.7 in May, its highest level since 2007, from 76.4 in the preceding month, outstripping expectations for a reading of 78.0. The strong data fuelled speculation that the Federal Reserve may begin to scale back its USD85 billion a month asset purchase program this year. Trade volumes looked likely to remain light on Monday, with many European traders celebrating Whit Monday.
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USD/JPY
The euro rose against the dollar on Monday after Japan's Minister of Economy Akira Amari said further weakening of the yen could harm Japan's economy, which sparked a greenback selloff. The Bank of Japan has enacted massive monetary easing measures to steer the country away from deflationary decline and more towards growth, with the yen plunging to lows against the dollar not seen since 2008 in recent weeks. Amari's comments sparked demand for the yen that came at the dollar's expense in a quiet session with little in the way of economic indicators or other steering currents.
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USD/CAD
The U.S. dollar edged higher against the Canadian dollar in quiet holiday-thinned trade on Monday, as markets in Canada remained closed for Victoria Day . The Canadian dollar fell sharply against the greenback on Friday after weak Canadian inflation data sparked speculation over a possible rate cut by the Bank of Canada. The annual rate of consumer price inflation fell to 0.4% in April from 1.0% the previous month, well below the BoC’s targeted inflation range of 1% to 3%. Demand for the greenback continued to be underpinned after data on Friday showing that U.S. consumer sentiment rose to an almost six year high in May, fuelled expectations that the Federal Reserve could scale back its easing program this year. The yen found broad support on Monday, after Japan’s Minister of Economy indicated that the yen’s correction from excessive strength was almost over, and warned that further yen weakness could have a negative impact on Japan’s economy.
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