Investing.com - The dollar strengthened against the yen on Wednesday after better-than-expected retail sales data out of the U.S. fueled optimism that another wave of positive indicators are set to hit the wire, dampening expectations the Federal Reserve will spur recovery via monetary easing tools.
In Asian trading on Wednesday, USD/JPY hit 78.86 up 0.15%, up from a session low of 78.79 and off a high of 78.90.
The pair was likely to find support at 78.69, the low from July 16, and resistance at 78.90, the earlier high.
The U.S. Commerce Department reported earlier that retail sales jumped 0.8% in July after a 0.7% drop in June, outpacing market expectations for a 0.3% increase.
It was the first gain in four months and spurred demand for dollars on sentiment that consumer confidence may be picking up, while the Fed may hold off on rolling out easing measures, which weaken the greenback to spur recovery.
Core retail sales, which exclude automobiles, rose 0.8% in July, well above market calls for a 0.4% increase and up from a 0.8% decline in June.
A separate report showed that U.S. producer prices rose at their fastest clip in five months in July, climbing 0.3% after a 0.1% increase the previous month.
Markets were expecting a 0.2% increase.
The numbers sent the greenback rising against the yen, a safe-haven currency, especially on reports that monetary easing may be more likely in Japan.
Recently released minutes of the Bank of Japan’s latest policy meeting showed that board members weren’t ruling out any options to jolt the economy, including rolling out monetary easing measures.
The yen was down against the pound and down against the euro, with GBP/JPY up 0.08% and trading at 123.53 and EUR/JPY up 0.17% and trading at 97.18.
Healthy U.S. retail sales data fueled talk that more indicators due out this week may exceed expectations.
Later Wednesday, the U.S. will release its latest consumer price index, as well as a report on manufacturing activity in the New York area and government data on net long term securities transactions. The Federal Reserve is also to produce data on the capacity utilization rate and industrial production, followed by a government report on crude oil inventories.
In Asian trading on Wednesday, USD/JPY hit 78.86 up 0.15%, up from a session low of 78.79 and off a high of 78.90.
The pair was likely to find support at 78.69, the low from July 16, and resistance at 78.90, the earlier high.
The U.S. Commerce Department reported earlier that retail sales jumped 0.8% in July after a 0.7% drop in June, outpacing market expectations for a 0.3% increase.
It was the first gain in four months and spurred demand for dollars on sentiment that consumer confidence may be picking up, while the Fed may hold off on rolling out easing measures, which weaken the greenback to spur recovery.
Core retail sales, which exclude automobiles, rose 0.8% in July, well above market calls for a 0.4% increase and up from a 0.8% decline in June.
A separate report showed that U.S. producer prices rose at their fastest clip in five months in July, climbing 0.3% after a 0.1% increase the previous month.
Markets were expecting a 0.2% increase.
The numbers sent the greenback rising against the yen, a safe-haven currency, especially on reports that monetary easing may be more likely in Japan.
Recently released minutes of the Bank of Japan’s latest policy meeting showed that board members weren’t ruling out any options to jolt the economy, including rolling out monetary easing measures.
The yen was down against the pound and down against the euro, with GBP/JPY up 0.08% and trading at 123.53 and EUR/JPY up 0.17% and trading at 97.18.
Healthy U.S. retail sales data fueled talk that more indicators due out this week may exceed expectations.
Later Wednesday, the U.S. will release its latest consumer price index, as well as a report on manufacturing activity in the New York area and government data on net long term securities transactions. The Federal Reserve is also to produce data on the capacity utilization rate and industrial production, followed by a government report on crude oil inventories.