NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Forex - USD/JPY gains on weak U.S. data, corporate earnings

Published 10/19/2012, 02:41 PM
Updated 10/19/2012, 02:42 PM
USD/JPY
-
EUR/JPY
-
GBP/JPY
-
Investing.com - The dollar rose against the yen on Friday as investors opted to hole up in safe-haven dollar positions in wake of weak U.S. housing data and poor third-quarter earnings results out of the U.S.

In U.S. trading on Friday, USD/JPY was trading at 79.30, up 0.03%, up from a session low of 79.14 and off a high of 79.43.

The pair was likely to find support at 79.14, the earlier low, and resistance at 79.43, the earlier high.

U.S. existing home sales fell in September but in line with expectations, industry data revealed on Friday.

In a report, the National Association of Realtors said that home sales fell 1.7% to 4.75 million from 4.83 million in August, whose figure was revised up from 4.82 million.

Analysts had expected existing home sales to fall to 4.75 million last month.

While in line with expectations, the report stoked bearish sentiments on Wall Street and sent investors chasing the dollar, ditching the euro and higher-yielding currencies in the process.

Earnings fueled dollar demand even more.

Microsoft reported late Thursday that its third-quarter net income fell 22% to USD4.47 billion, which missed expectations, while revenue fell 8% on year to USD16.01 billion.

General Electric, meanwhile, reported earlier that its third-quarter net income rose 8% to USD3.49 billion, while revenue rose 3% to USD36.35, missing market expectations.

Search giant Google released earnings earlier than planned late Thursday, which sparked confusion, and missed estimates as well.

Both currencies saw demand on news Spain won't rush to seek rescue financing.

Spanish Prime Minister Mariano Rajoy said his government felt it was under no pressure to seek a bailout, which pushed the euro down against safe-haven currencies, including the yen.

Requesting financial assistance would allow Spain to tap the European Central Bank's bond-buying program, which would lower yields in Spanish government debt auctions and ease credit conditions in the country.

The yen, meanwhile was up against the pound and up against the euro, with GBP/JPY down 0.17% and trading at 126.95 and EUR/JPY trading down 0.30% at 103.26.








Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.