Investing.com - The U.S. dollar dropped to a fresh seven-month low against the yen on Thursday, following the release of disappointing U.S. jobless data, as markets eyed the conclusion of the Federal Reserve’s two-day policy meeting later in the day.
USD/JPY hit 77.56 during European afternoon trade, the pair’s lowest since February 14; the pair subsequently consolidated at 77.57, dropping 0.36%.
The pair was likely to find support at 77.56, the session low and resistance at 77.96, Wednesday’s high.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending September 8 rose by 15,000 to a seasonally adjusted 382,000, compared to expectations for an increase of 3,000 to 370,000.
The previous week’s figure was revised up to 367,000 from a previously reported 365,000.
A separate report showed that producer prices in the U.S. rose by a seasonally adjusted 1.7% in August, compared to expectations for a 1.1% increase, after rising 0.3% in July.
The data came as markets were eyeing the outcome of the Fed’s policy meeting later Thursday, amid growing speculation that the U.S. central bank may implement a third round of quantitative easing to bolster growth.
The yen was also higher against the euro with EUR/JPY shedding 0.38%, to hit 100.06.
Italy saw borrowing costs drop sharply at an auction of three- and five-year government bonds, as Italian government financing costs continue to move lower since ECB President Mario Draghi announced the bank’s new government bond buying plan.
USD/JPY hit 77.56 during European afternoon trade, the pair’s lowest since February 14; the pair subsequently consolidated at 77.57, dropping 0.36%.
The pair was likely to find support at 77.56, the session low and resistance at 77.96, Wednesday’s high.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending September 8 rose by 15,000 to a seasonally adjusted 382,000, compared to expectations for an increase of 3,000 to 370,000.
The previous week’s figure was revised up to 367,000 from a previously reported 365,000.
A separate report showed that producer prices in the U.S. rose by a seasonally adjusted 1.7% in August, compared to expectations for a 1.1% increase, after rising 0.3% in July.
The data came as markets were eyeing the outcome of the Fed’s policy meeting later Thursday, amid growing speculation that the U.S. central bank may implement a third round of quantitative easing to bolster growth.
The yen was also higher against the euro with EUR/JPY shedding 0.38%, to hit 100.06.
Italy saw borrowing costs drop sharply at an auction of three- and five-year government bonds, as Italian government financing costs continue to move lower since ECB President Mario Draghi announced the bank’s new government bond buying plan.