Investing.com - The U.S. dollar was steady against the yen on Monday, hovering close to a five-week high as a string of upbeat U.S. data last week supported demand for the greenback, while fresh hopes for progress in tackling the euro zone’s debt crisis lifted market sentiment.
USD/JPY hit 79.42 during early European trade, the daily low; the pair subsequently consolidated at 79.51, edging down 0.06%.
The pair was likely to find support at 79.20, the low of July 10 and resistance at 79.94, the high of July 12.
The greenback strengthened broadly after positive U.S. economic reports last week dampened expectations for fresh stimulus measures by the Federal Reserve.
Data on Friday showed that the University of Michigan’s consumer sentiment index for August hit its highest level in three months, coming in at 73.6 from 72.3 in July and outstripping forecasts for a reading of 72.4.
The data came after better-than-expected U.S. retail sales and industrial production data earlier in the week tempered expectations for another round of quantitative easing by the U.S. central bank.
Markets were eyeing the minutes of the Fed’s most recent policy meeting on Wednesday, for indications on the U.S. central bank’s future policy decisions.
Meanwhile, market sentiment remained supported after German Chancellor Angela Merkel last week backed European Central Bank President Mario Draghi's vow to do all that is necessary to defend euro.
Her comments increased expectations the ECB would buy Spanish and Italian bonds next month to lower the two countries' borrowing costs.
Elsewhere, the yen was lower against the euro with EUR/JPY rising 0.21%, to hit 98.33.
German magazine Spiegel reported on Sunday that the ECB may set limits on yields of euro-area sovereign debt by pledging unlimited bond purchases, at the bank’s next policy meeting in September.
USD/JPY hit 79.42 during early European trade, the daily low; the pair subsequently consolidated at 79.51, edging down 0.06%.
The pair was likely to find support at 79.20, the low of July 10 and resistance at 79.94, the high of July 12.
The greenback strengthened broadly after positive U.S. economic reports last week dampened expectations for fresh stimulus measures by the Federal Reserve.
Data on Friday showed that the University of Michigan’s consumer sentiment index for August hit its highest level in three months, coming in at 73.6 from 72.3 in July and outstripping forecasts for a reading of 72.4.
The data came after better-than-expected U.S. retail sales and industrial production data earlier in the week tempered expectations for another round of quantitative easing by the U.S. central bank.
Markets were eyeing the minutes of the Fed’s most recent policy meeting on Wednesday, for indications on the U.S. central bank’s future policy decisions.
Meanwhile, market sentiment remained supported after German Chancellor Angela Merkel last week backed European Central Bank President Mario Draghi's vow to do all that is necessary to defend euro.
Her comments increased expectations the ECB would buy Spanish and Italian bonds next month to lower the two countries' borrowing costs.
Elsewhere, the yen was lower against the euro with EUR/JPY rising 0.21%, to hit 98.33.
German magazine Spiegel reported on Sunday that the ECB may set limits on yields of euro-area sovereign debt by pledging unlimited bond purchases, at the bank’s next policy meeting in September.