Investing.com - The U.S. dollar continued to falter against the Japanese yen during Monday’s Asian ahead of speech expected later Monday by Bank of Japan Governor Haruhikho Kuroda.
In Asian trading Monday, USD/JPY slid 0.60% to 97.72.The pair was likely to find resistance at 99.41, the earlier high, and support at 97.63, the earlier low.
Kuroda is expected to give a speech in less than an hour, but USD/JPY price action indicates traders are not expecting much in the way of support for Japanese stocks or comments that could weaken the yen.
The yen has been gaining steam against the greenback in recent sessions amid mediocre U.S. economic data. In U.S. economic news out last Friday, the Thomson Reuters/University of Michigan final index of consumer sentiment for July rose to 85.1 from 84.1 last month. Economists expected a July reading of 84. The initial July reading was 83.9
Last Thursday, the U.S. Labor Department said initial claims for jobless benefits rose by 7,000 to 343,000 last week. Economists expected a reading of 340,000 new claims. The unemployment rate among people eligible for benefits dropped to 2.3 percent in the week ended July 13 from 2.4 percent the prior week, according to Bloomberg.
Those data points have bolstered demand for safe-haven currencies aside from the dollar. The yen also caught a bid against the dollar after Japan’s Ministry of Economy Trade and Industry said that retail sales in the world’s third-largest economy rose 1.6% in June following a May increase of 0.8%. Economists expected a 1.9% increase in June.
With Japan’s easing efforts already massive and real interest rates there essentially in negative territory, Kuroda is seen as having few options for weakening the yen in the near-term.
Elsewhere, AUD/JPY dropped 0.46% to 90.66 while NZD/JPY fell 0.47% to 79.08.
In Asian trading Monday, USD/JPY slid 0.60% to 97.72.The pair was likely to find resistance at 99.41, the earlier high, and support at 97.63, the earlier low.
Kuroda is expected to give a speech in less than an hour, but USD/JPY price action indicates traders are not expecting much in the way of support for Japanese stocks or comments that could weaken the yen.
The yen has been gaining steam against the greenback in recent sessions amid mediocre U.S. economic data. In U.S. economic news out last Friday, the Thomson Reuters/University of Michigan final index of consumer sentiment for July rose to 85.1 from 84.1 last month. Economists expected a July reading of 84. The initial July reading was 83.9
Last Thursday, the U.S. Labor Department said initial claims for jobless benefits rose by 7,000 to 343,000 last week. Economists expected a reading of 340,000 new claims. The unemployment rate among people eligible for benefits dropped to 2.3 percent in the week ended July 13 from 2.4 percent the prior week, according to Bloomberg.
Those data points have bolstered demand for safe-haven currencies aside from the dollar. The yen also caught a bid against the dollar after Japan’s Ministry of Economy Trade and Industry said that retail sales in the world’s third-largest economy rose 1.6% in June following a May increase of 0.8%. Economists expected a 1.9% increase in June.
With Japan’s easing efforts already massive and real interest rates there essentially in negative territory, Kuroda is seen as having few options for weakening the yen in the near-term.
Elsewhere, AUD/JPY dropped 0.46% to 90.66 while NZD/JPY fell 0.47% to 79.08.