👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Forex - USD/JPY falls on sluggish U.S. factory data

Published 03/28/2012, 11:01 PM
Updated 03/28/2012, 11:04 PM
USD/JPY
-
EUR/JPY
-
GBP/JPY
-
Investing.com - The dollar fell against the yen on Thursday, as weaker-than-expected factory orders for durable goods out of the U.S. coupled with strong retail sales out of Japan sent the greenback falling against a firming yen.

In Asian trading on Thursday, USD/JPY hit 82.61, down 0.35%, up from a low of 82.59 and off a high of 82.97.

The pair sought to test support at 81.99, Friday's low, and resistance at 83.38, Tuesday's high.

In the U.S., the Commerce Department reported durable goods orders increased 2.2% in February, not enough to fully reverse January's revised 3.6% decline.

The number also failed to meet expectations for a 3.0% increase.

The news sent the dollar weakening against the yen, which also gained on sentiment that Japanese exporters are entering a period where they repatriate money from overseas sales.

Meanwhile, Japan reported better-than-expected retail sales, which rose 3.5% in February from a year earlier, well above forecasts for a 1.4% gain.

The data sent the greenback falling against the yen, especially since U.S. consumer confidence and housing-sector numbers have been on the sluggish side lately.

Furthermore, Federal Reserve Chairman Ben Bernanke has said he could not rule out the need for stimulus tools to pump up the economy such as quantitative easing, which are bond purchases from banks designed to flood the economy with liquidity with the aim of encouraging price stability and hiring by pushing long-term interest rates low.

The dollar often weakens on mention of such accommodative policies.

The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY falling 0.33% to 131.28 and EUR/JPY down 0.31% at 110.05.

Later Thursday, data on Japanese industrial output, inflation rates and unemployment rates are due out.

On Thursday in the U.S., gross domestic product figures, initial jobless claims and results from the Federal Reserve Bank of Kansas City quarterly manufacturers' survey are due out.

Fed Chairman Ben Bernanke is due to make an appearance in public as well.






Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.