Investing.com - The U.S. dollar edged higher against the yen on Thursday, but gains were limited as renewed concerns over the outlook for global economic growth after a flurry of disappointing economic reports boosted safe haven demand.
USD/JPY hit 80.28 during early European trade, the daily high; the pair subsequently consolidated at 80.25, adding 0.14%.
The pair was likely to find support at 79.92, the low of February 24 and resistance at 80.60, Wednesday’s high.
Trading was expected to remain light with markets in Japan closed for the Golden Week holiday.
Market sentiment was sharply hit on Wednesday after a string of weak data from the U.S. and the euro zone reignited fears over the outlook for global economic growth.
Data showed that the final euro zone manufacturing index slumped to a 34-month low in April, while the unemployment rate in the bloc climbed to a record 10.7% in March.
Investors remained cautious ahead of the European Central Bank’s policy-setting meeting later in the day, amid ongoing concerns over elevated borrowing costs for vulnerable peripheral nations, particularly Spain.
In the U.S., a report showed that private sector added 119,000 jobs in April, far short of expectations for a gain of 177,000. It was the smallest increase in ADP nonfarm payrolls since September 2011.
The data added to fears that the economic recovery in the U.S. is losing momentum, ahead of a government report on nonfarm payrolls on Friday, after government in March showed a slowdown in hiring.
Elsewhere, the yen was moderately lower against the euro with EUR/JPY edging up 0.09%, to hit 105.57.
Later in the day, the U.S. was to produce government data on unemployment claims, as well as preliminary data on nonfarm productivity and unit labor costs. In addition, the Institute of Supply Management was to produce a report on service sector growth.
USD/JPY hit 80.28 during early European trade, the daily high; the pair subsequently consolidated at 80.25, adding 0.14%.
The pair was likely to find support at 79.92, the low of February 24 and resistance at 80.60, Wednesday’s high.
Trading was expected to remain light with markets in Japan closed for the Golden Week holiday.
Market sentiment was sharply hit on Wednesday after a string of weak data from the U.S. and the euro zone reignited fears over the outlook for global economic growth.
Data showed that the final euro zone manufacturing index slumped to a 34-month low in April, while the unemployment rate in the bloc climbed to a record 10.7% in March.
Investors remained cautious ahead of the European Central Bank’s policy-setting meeting later in the day, amid ongoing concerns over elevated borrowing costs for vulnerable peripheral nations, particularly Spain.
In the U.S., a report showed that private sector added 119,000 jobs in April, far short of expectations for a gain of 177,000. It was the smallest increase in ADP nonfarm payrolls since September 2011.
The data added to fears that the economic recovery in the U.S. is losing momentum, ahead of a government report on nonfarm payrolls on Friday, after government in March showed a slowdown in hiring.
Elsewhere, the yen was moderately lower against the euro with EUR/JPY edging up 0.09%, to hit 105.57.
Later in the day, the U.S. was to produce government data on unemployment claims, as well as preliminary data on nonfarm productivity and unit labor costs. In addition, the Institute of Supply Management was to produce a report on service sector growth.