Investing.com – The U.S. dollar erased gains against the yen on Thursday, pulling back from a three-day high after the Federal Reserve warned of risks to the U.S. economy and unveiled fresh measures to boost growth.
USD/JPY pulled away from 76.96, the pair’s highest since Monday, to hit 76.38 during late Asian trade, slipping 0.10%.
The pair was likely to find support at 76.10, Wednesday’s low and a one-month low and resistance at 76.96, the days high.
The Fed unveiled a plan to sell USD400 billion of short-term Treasury bonds to buy the same amount of longer-term U.S. government debt, in an attempt to boost the economy by pushing down long-term interest rates, a move dubbed “Operation Twist.”
But safe haven demand was boosted after the central bank warned that the U.S. faces a grim economic outlook.
“There are significant downside risks to the economic outlook, including strains in global financial markets,” the Fed said.
Meanwhile, reports showing that Chinese factory output fell for a third consecutive month in September and New Zealand’s economy grew less-than-expected in the second quarter also added to fears over a slowdown in global growth.
The yen was also higher against the euro, with EUR/JPY shedding 0.55% to hit a 10-year low of 103.22.
Later in the day, the U.S. was to publish its weekly report on initial jobless claims.
USD/JPY pulled away from 76.96, the pair’s highest since Monday, to hit 76.38 during late Asian trade, slipping 0.10%.
The pair was likely to find support at 76.10, Wednesday’s low and a one-month low and resistance at 76.96, the days high.
The Fed unveiled a plan to sell USD400 billion of short-term Treasury bonds to buy the same amount of longer-term U.S. government debt, in an attempt to boost the economy by pushing down long-term interest rates, a move dubbed “Operation Twist.”
But safe haven demand was boosted after the central bank warned that the U.S. faces a grim economic outlook.
“There are significant downside risks to the economic outlook, including strains in global financial markets,” the Fed said.
Meanwhile, reports showing that Chinese factory output fell for a third consecutive month in September and New Zealand’s economy grew less-than-expected in the second quarter also added to fears over a slowdown in global growth.
The yen was also higher against the euro, with EUR/JPY shedding 0.55% to hit a 10-year low of 103.22.
Later in the day, the U.S. was to publish its weekly report on initial jobless claims.