Investing.com - The dollar firmed against the yen on Monday after Iran agreed to a multilateral proposal to limit its nuclear ambitions, which sparked widespread demand for the dollar.
In U.S. trading on Monday, USD/JPY was trading at 101.71, up 0.43%, up from a session low of 101.14 and off a high of 101.92.
The pair was likely to find support at 99.57, Tuesday's low, and resistance at 102.53, the high from May 29.
Iran's decision to limit its nuclear ambitions enticed investors out of safe-haven yen positions on Monday and sparked demand for the dollar.
Weekend talks among the U.S., Russia, China, Britain, Germany, France and Iran ended in agreement that halted advancements in Iran's nuclear program in exchange for easing economic sanctions against Tehran.
Under the terms of the agreement, Iran will stop enriching uranium beyond 5%, and neutralize its stockpile of uranium enriched beyond that point.
Tehran will also grant more access to its facilities to nuclear inspectors in exchange for no new sanctions for six months.
Iran will also receive sanctions relief worth approximately USD7 billion in trade on oil, auto and airplane parts, gold and precious metals for six months.
Trade sanctions slapped on Iran due to its alleged nuclear ambitions have taken out more than 1 million barrels of oil per day from the global market in the past two years.
World powers have accused Iran of using its nuclear program to secretly develop nuclear weapons, an assertion the country has consistently denied.
The news offset otherwise bearish data for the dollar in the U.S. housing sector that revealed
pending home sales fell unexpectedly in October.
In a report, the National Association of Realtors said its pending home sales index declined by a seasonally adjusted 0.6% in October, disappointing market expectations for a 1.3% gain.
Year-on-year, pending home sales fell at annualized rate of 2.2% last month, outpacing expectations for a 1% decline after rising 2% in September.
Meanwhile in Japan, Bank of Japan Governor Haruhiko Kuroda reiterated that monetary authorities will continue massive stimulus programs and added the bank was prepared to take further steps if necessary in order to meet its 2% inflation target, which weakened the yen even further.
The yen was up against the pound and down against the euro, with GBP/JPY down 0.01% and trading at 164.28 and EUR/JPY trading up 0.12% at 137.45.
On Tuesday, the U.S. is to produce data on building permits, a leading indicator of future construction activity as well as a report on housing starts. The nation is also to release private sector data on consumer confidence and house price inflation.
The Bank of Japan is to publish the minutes of its latest policy meeting, which contain valuable insights into economic conditions from the bank’s perspective.
In U.S. trading on Monday, USD/JPY was trading at 101.71, up 0.43%, up from a session low of 101.14 and off a high of 101.92.
The pair was likely to find support at 99.57, Tuesday's low, and resistance at 102.53, the high from May 29.
Iran's decision to limit its nuclear ambitions enticed investors out of safe-haven yen positions on Monday and sparked demand for the dollar.
Weekend talks among the U.S., Russia, China, Britain, Germany, France and Iran ended in agreement that halted advancements in Iran's nuclear program in exchange for easing economic sanctions against Tehran.
Under the terms of the agreement, Iran will stop enriching uranium beyond 5%, and neutralize its stockpile of uranium enriched beyond that point.
Tehran will also grant more access to its facilities to nuclear inspectors in exchange for no new sanctions for six months.
Iran will also receive sanctions relief worth approximately USD7 billion in trade on oil, auto and airplane parts, gold and precious metals for six months.
Trade sanctions slapped on Iran due to its alleged nuclear ambitions have taken out more than 1 million barrels of oil per day from the global market in the past two years.
World powers have accused Iran of using its nuclear program to secretly develop nuclear weapons, an assertion the country has consistently denied.
The news offset otherwise bearish data for the dollar in the U.S. housing sector that revealed
pending home sales fell unexpectedly in October.
In a report, the National Association of Realtors said its pending home sales index declined by a seasonally adjusted 0.6% in October, disappointing market expectations for a 1.3% gain.
Year-on-year, pending home sales fell at annualized rate of 2.2% last month, outpacing expectations for a 1% decline after rising 2% in September.
Meanwhile in Japan, Bank of Japan Governor Haruhiko Kuroda reiterated that monetary authorities will continue massive stimulus programs and added the bank was prepared to take further steps if necessary in order to meet its 2% inflation target, which weakened the yen even further.
The yen was up against the pound and down against the euro, with GBP/JPY down 0.01% and trading at 164.28 and EUR/JPY trading up 0.12% at 137.45.
On Tuesday, the U.S. is to produce data on building permits, a leading indicator of future construction activity as well as a report on housing starts. The nation is also to release private sector data on consumer confidence and house price inflation.
The Bank of Japan is to publish the minutes of its latest policy meeting, which contain valuable insights into economic conditions from the bank’s perspective.