Investing.com - The U.S. dollar slipped to a two-day low against the yen on Wednesday, after a string of weak data out of the euro zone reinforced concerns over the outlook for global growth, but losses were limited by encouraging data out of China.
USD/JPY hit 79.69 during European morning trade, the pair’s lowest since Monday; the pair subsequently consolidated at 79.76, slipping 0.11%.
The pair was likely to find support at 79.20, Monday’s low and resistance at 79.91, the session high.
Safe haven demand was boosted after data showed that the flash euro zone manufacturing purchasing managers’ index fell to 45.3 in October from a final reading of 46.1 in September. Analysts had expected the index to ease up to 46.6 in October.
A separate report showed that the euro zone’s service’s PMI inched up to 46.2 in October from 46.1 last month.
Germany’s flash manufacturing PMI fell to 45.7 in October, from a final reading of 47.4 in September, adding to concerns over the euro zone’s largest economy.
Elsewhere, a report by German research institute Ifo showed that its business climate index fell to100.0 in October, the lowest level since March 2010, from a reading of 101.4 in September.
The dollar remained supported after a report earlier showed that China's HSBC manufacturing PMI improved to 49.1 in October, compared with a final reading of 47.9 in September.
The yen remained under pressure amid speculation that the Bank of Japan may ease monetary policy further at its upcoming policy meeting on October 30.
The yen was trading close to a one-week high against the euro, with EUR/JPY down 0.54% to 103.13.
Later Wednesday, the Federal Reserve was to announce its benchmark interest rate and release its first monetary policy statement since the central bank announced a third round of quantitative easing in September. The U.S. was to release official data on new home sales.
Meanwhile, European Central Bank President Mario Draghi was to attend a meeting in Germany’s central bank, which was to be followed by a press conference.
USD/JPY hit 79.69 during European morning trade, the pair’s lowest since Monday; the pair subsequently consolidated at 79.76, slipping 0.11%.
The pair was likely to find support at 79.20, Monday’s low and resistance at 79.91, the session high.
Safe haven demand was boosted after data showed that the flash euro zone manufacturing purchasing managers’ index fell to 45.3 in October from a final reading of 46.1 in September. Analysts had expected the index to ease up to 46.6 in October.
A separate report showed that the euro zone’s service’s PMI inched up to 46.2 in October from 46.1 last month.
Germany’s flash manufacturing PMI fell to 45.7 in October, from a final reading of 47.4 in September, adding to concerns over the euro zone’s largest economy.
Elsewhere, a report by German research institute Ifo showed that its business climate index fell to100.0 in October, the lowest level since March 2010, from a reading of 101.4 in September.
The dollar remained supported after a report earlier showed that China's HSBC manufacturing PMI improved to 49.1 in October, compared with a final reading of 47.9 in September.
The yen remained under pressure amid speculation that the Bank of Japan may ease monetary policy further at its upcoming policy meeting on October 30.
The yen was trading close to a one-week high against the euro, with EUR/JPY down 0.54% to 103.13.
Later Wednesday, the Federal Reserve was to announce its benchmark interest rate and release its first monetary policy statement since the central bank announced a third round of quantitative easing in September. The U.S. was to release official data on new home sales.
Meanwhile, European Central Bank President Mario Draghi was to attend a meeting in Germany’s central bank, which was to be followed by a press conference.