Forex - USD/JPY hits 1-week high as growth worries ease

Published 10/15/2012, 04:13 AM
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Investing.com - The U.S. dollar climbed to a one-week high against the yen on Monday as concerns over a slowdown in global economic growth eased following encouraging Chinese data, but gains were limited as uncertainty over a Spanish bailout persisted.

USD/JPY hit 78.66 during European morning trade, the pair’s highest since October 8; the pair subsequently consolidated at 78.53, gaining 0.12%.

The pair was likely to find support at 78.32, the session low and resistance at 78.86, the high of October 5.

China posted better-than-expected trade data over the weekend, with official data showing that the trade surplus unexpectedly widened in September as export demand increased, easing concerns over a slowdown in the world’s second largest economy.

Investors remained cautious after Spain did not request financial aid over the weekend, disappointing some market expectations and a request for a bailout is now seen as unlikely ahead of regional elections on October 21.

Elsewhere in the euro zone, Greek Prime Minister Antonis Samaras said Sunday his country was facing the “last hurdle” before recovery and expressed confidence that the government will reach an agreement with international creditors ahead of Thursday’s European Union summit.

The yen was little changed against the euro, with EUR/JPY inching up 0.04% to 101.64.

Later in the day, the U.S. was to release official data on retail sales, as well as a report on business inventories.


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