Investing.com - The U.S. dollar erased gains against the yen on Wednesday, pulling away from a one-month high as disappointing U.S. economic data on manufacturing activity and consumer prices dented demand for the greenback.
USD/JPY pulled back from 79.05, the pair’s highest since July 18, to hit 78.74 during European afternoon trade, inching down 0.01%.
The pair was likely to find support at 78.43, the low of July 20 and resistance at 79.38, the high of July 13.
Data showed that the New York Federal Reserve’s index of manufacturing conditions deteriorated significantly more-than-expected in August, slipping below zero for the first time since October 2011.
The Federal Reserve Bank of New York said that its general business conditions index fell by 13.2 points to minus 5.8 in August from a reading of 7.4 in July.
Analysts had expected the index to decline by 0.9 points to 6.5 in August.
Separately, official data showed that consumer prices were unchanged in July, following a flat reading the previous month and compared to expectations for a 0.2% rise.
Core consumer prices, which exclude food and energy prices, rose 0.1%, less than the expected 0.2% increase and after a 0.2% rise in June.
The reports sparked fresh speculation that the Federal Reserve may turn to fresh stimulus measures in the near future to shore up growth.
Data earlier in the week showing that economic growth in Japan and the euro zone contracted in the second quarter kept alive hopes that world central banks will implement more easing measures to spur the global economic recovery.
Meanwhile, the minutes of the Bank of Japan’s latest policy meeting, released on Tuesday, continued to weigh on the yen as board members indicated that they weren’t ruling out any options to bolster growth.
The yen was steady against the euro with EUR/JPY dipping 0.01%, to hit 97.01.
Later in the day, the Federal Reserve was to release data on industrial production.
USD/JPY pulled back from 79.05, the pair’s highest since July 18, to hit 78.74 during European afternoon trade, inching down 0.01%.
The pair was likely to find support at 78.43, the low of July 20 and resistance at 79.38, the high of July 13.
Data showed that the New York Federal Reserve’s index of manufacturing conditions deteriorated significantly more-than-expected in August, slipping below zero for the first time since October 2011.
The Federal Reserve Bank of New York said that its general business conditions index fell by 13.2 points to minus 5.8 in August from a reading of 7.4 in July.
Analysts had expected the index to decline by 0.9 points to 6.5 in August.
Separately, official data showed that consumer prices were unchanged in July, following a flat reading the previous month and compared to expectations for a 0.2% rise.
Core consumer prices, which exclude food and energy prices, rose 0.1%, less than the expected 0.2% increase and after a 0.2% rise in June.
The reports sparked fresh speculation that the Federal Reserve may turn to fresh stimulus measures in the near future to shore up growth.
Data earlier in the week showing that economic growth in Japan and the euro zone contracted in the second quarter kept alive hopes that world central banks will implement more easing measures to spur the global economic recovery.
Meanwhile, the minutes of the Bank of Japan’s latest policy meeting, released on Tuesday, continued to weigh on the yen as board members indicated that they weren’t ruling out any options to bolster growth.
The yen was steady against the euro with EUR/JPY dipping 0.01%, to hit 97.01.
Later in the day, the Federal Reserve was to release data on industrial production.