Forex - USD/JPY gains on BoJ easing, hopes for strong China data

Published 10/31/2012, 09:40 PM
Updated 10/31/2012, 09:42 PM
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Investing.com - The dollar firmed against the yen on Thursday ahead of the release of the latest Chinese purchasing managers index.

Hopes for a strong number sent the Japanese currency falling in anticipation for a risk-on trading session, though markets remained in a wait-and-see mode that was bullish for the greenback.

In Asian trading on Thursday, USD/JPY was trading at 79.89, up 0.15%, up from a session low of 79.85 and off a high of 79.90.

The pair was likely to find support at 79.52, Wednesday's low, and resistance at 79.96, Wednesday's high.

Later Thursday, China will release official data on manufacturing activity, a leading indicator of economic health.

A similar report from HSBC Holdings is due out as well.

Hopes for improvements from previous reports sent the yen falling.

The dollar, meanwhile, saw gains on weak output data at home.

The Institute for Supply Management-Chicago reported earlier that its October index of Midwest business activity rose to 49.9 from 49.7 in September, though analysts were expecting a reading of 51.0.

A reading of below 50.0 indicates a contracting sector.

The numbers dampened appetite for risk in the U.S., sending investors to the safety of the dollar.

The yen, meanwhile was down against the pound and down against the euro, with GBP/JPY up 0.16% and trading at 128.87 and EUR/JPY trading up 0.13% at 103.51.

Later Thursday, the U.S. will release its weekly government report on initial jobless claims, as well as official data on nonfarm productivity and labor costs, important inflationary indicators.

In addition, the Institute of Supply Management is to publish data on U.S. manufacturing activity.








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