Investing.com - The U.S. dollar was higher against the yen on Tuesday, as a flurry of downbeat economic reports added to concerns over the outlook for global economic growth and raised expectations for further easing measures by central banks.
USD/JPY hit 79.85 during early European trade, the daily high; the pair subsequently consolidated at 79.82, rising 0.39%.
The pair was likely to find support at 79.12, the low of June 29 and resistance at 80.32, the high of June 21.
On Monday, the Institute for Supply Management said its index of U.S. manufacturing activity dropped to 49.7 in June, its lowest level since July 2009, from 53.5 in May.
The data fuelled speculation that the Federal Reserve may implement a third round of quantitative easing, to shore up growth in the U.S. economy.
In the euro zone, the final reading of the bloc’s manufacturing index came in at 45.1 in June, holding steady at its lowest level since June 2009.
Investors were looking ahead to the outcome of the European Central Bank’s monetary policy meeting on Thursday, amid growing expectations for a rate cut.
The gloomy reports came after government data showed that Chinese manufacturing activity grew at its slowest pace in seven months in June, as new export orders tumbled to lows hit in March 2009.
Market players were also hoping for further easing measures from Beijing to boost growth in the world’s second largest economy.
In Japan, government data showed earlier that average cash earnings fell unexpectedly in May, declining 0.8% after a 0.2% rise the previous month. Analysts had expected average cash earnings to rise 0.6% in May.
The yen was also lower against the euro with EUR/JPY advancing 0.61%, to hit 100.60.
Later in the day, the U.S. was to release official data on factory orders.
USD/JPY hit 79.85 during early European trade, the daily high; the pair subsequently consolidated at 79.82, rising 0.39%.
The pair was likely to find support at 79.12, the low of June 29 and resistance at 80.32, the high of June 21.
On Monday, the Institute for Supply Management said its index of U.S. manufacturing activity dropped to 49.7 in June, its lowest level since July 2009, from 53.5 in May.
The data fuelled speculation that the Federal Reserve may implement a third round of quantitative easing, to shore up growth in the U.S. economy.
In the euro zone, the final reading of the bloc’s manufacturing index came in at 45.1 in June, holding steady at its lowest level since June 2009.
Investors were looking ahead to the outcome of the European Central Bank’s monetary policy meeting on Thursday, amid growing expectations for a rate cut.
The gloomy reports came after government data showed that Chinese manufacturing activity grew at its slowest pace in seven months in June, as new export orders tumbled to lows hit in March 2009.
Market players were also hoping for further easing measures from Beijing to boost growth in the world’s second largest economy.
In Japan, government data showed earlier that average cash earnings fell unexpectedly in May, declining 0.8% after a 0.2% rise the previous month. Analysts had expected average cash earnings to rise 0.6% in May.
The yen was also lower against the euro with EUR/JPY advancing 0.61%, to hit 100.60.
Later in the day, the U.S. was to release official data on factory orders.