Investing.com - The U.S. dollar dropped to a fresh one-week low against the yen on Thursday, as disappointing U.S. jobless claims added to concerns over the outlook for global economic growth, following a string of weak economic reports from the euro zone and China.
USD/JPY hit 78.02 during European afternoon trade, the pair's lowest since September 14; the pair subsequently consolidated at 78.04, dropping 0.44%.
The pair was likely to find support at 77.70, the low of September 11 and a three-month low and resistance at 78.46, the session high.
The greenback pushed lower against the yen after data showed that the number of people who filed for unemployment assistance in the U.S. last week fell less-than-expected, while the previous week’s figure was revised higher.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending September 15 fell by 3,000 to a seasonally adjusted 382,000, compared to expectations for a decrease of 10,000 to 375,000.
The previous week’s figure was revised up to 385,000 from a previously reported 382,000.
Market sentiment had weakened broadly earlier, after preliminary data showed that the euro zone’s manufacturing purchasing manufacturers' index rose more-than-expected in September, while service sector activity fell unexpectedly.
A separate report showed that manufacturing activity in Germany contracted at the slowest rate in six months in September, while service sector activity grew modestly.
Earlier in the day, data showed that China’s HSBC Flash Purchasing Managers Index rose slightly to 47.8 in September from a final reading of 47.6 in August.
Despite the modest uptick higher, manufacturing activity in China remained in contraction territory for the 11th consecutive month, adding to fears over a further slowdown in the region’s largest economy.
The yen was also sharply higher against the euro with EUR/JPY tumbling 0.80%, to hit 101.45.
Also Thursday, official data showed that Japan's trade deficit widened unexpectedly to JPY0.47 trillion in August, from a deficit of JPY0.37 trillion the previous month.
Analysts had expected the trade balance to remain unchanged in August.
Later in the day, the U.S. was to release an index of manufacturing activity in Philadelphia.
USD/JPY hit 78.02 during European afternoon trade, the pair's lowest since September 14; the pair subsequently consolidated at 78.04, dropping 0.44%.
The pair was likely to find support at 77.70, the low of September 11 and a three-month low and resistance at 78.46, the session high.
The greenback pushed lower against the yen after data showed that the number of people who filed for unemployment assistance in the U.S. last week fell less-than-expected, while the previous week’s figure was revised higher.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending September 15 fell by 3,000 to a seasonally adjusted 382,000, compared to expectations for a decrease of 10,000 to 375,000.
The previous week’s figure was revised up to 385,000 from a previously reported 382,000.
Market sentiment had weakened broadly earlier, after preliminary data showed that the euro zone’s manufacturing purchasing manufacturers' index rose more-than-expected in September, while service sector activity fell unexpectedly.
A separate report showed that manufacturing activity in Germany contracted at the slowest rate in six months in September, while service sector activity grew modestly.
Earlier in the day, data showed that China’s HSBC Flash Purchasing Managers Index rose slightly to 47.8 in September from a final reading of 47.6 in August.
Despite the modest uptick higher, manufacturing activity in China remained in contraction territory for the 11th consecutive month, adding to fears over a further slowdown in the region’s largest economy.
The yen was also sharply higher against the euro with EUR/JPY tumbling 0.80%, to hit 101.45.
Also Thursday, official data showed that Japan's trade deficit widened unexpectedly to JPY0.47 trillion in August, from a deficit of JPY0.37 trillion the previous month.
Analysts had expected the trade balance to remain unchanged in August.
Later in the day, the U.S. was to release an index of manufacturing activity in Philadelphia.