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Forex - Yen eases slightly in holiday-thinned trade in Asia

Published 07/16/2015, 08:43 PM
Updated 07/16/2015, 08:45 PM
Yen weaker in holiday-thinned trade
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Investing.com - The yen eased slightly in early Asian trade on Friday with markets in many regional trading centers closed today to mark the Eid holidays, including Singapore, Malaysia and Indonesia.

USD/JPY changed hands at 124.19, up 0.03%, while AUD/USD traded at 0.7411, up 0.08%. EUR/USD traded at 1.0881, up 0.05%.

Elsewhere there's very little on the data calendar to inspire the market.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.35% at 97.63, down from one-and-a-half month highs of 97.91 hit earlier in the session.

Overnight, the dollar trimmed gains against a basket of other major currencies on Thursday, pulling back from a one-and-a-half month peak after data showed that manufacturing activity in the Philadelphia-region expanded at the slowest pace in four months in July.

The Federal Reserve Bank of Philadelphia reported on Thursday that its manufacturing index deteriorated to a reading of 5.7 this month from June's reading of 15.2. Analysts had expected the index to fall to 12.0 in July.

The report came after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending July 11 fell by 15,000 to 281,000 from the previous week’s total of 296,000. Analysts had expected initial jobless claims to fall by 10,000 to 285,000 last week.

The greenback remained supported after Federal Reserve Chair Janet Yellen said, in testimony before the House Financial Services committee on Wednesday, that the Fed is likely to raise rates "at some point this year." She added that the U.S. labor market healthier but "still some slack."


The euro found some support after the European Central Bank increased its emergency lending to Greek banks by €900 million and added that it is operating under the assumption that Greece will remain in the euro zone.

Speaking at a news conference after the bank’s decision to keep euro area interest rates on hold at record lows, ECB President Mario Draghi said several positive things have happened to allow the increase in emergency liquidity assistance.

Greece’s parliament on Wednesday approved stringent reform measures demanded by the country’s creditors in order to secure a new bailout program.

Draghi said it now appeared that Greece would make the repayment and clear its arrears to the International Monetary Fund.

A €7 billion short-term financing package to keep Greece afloat until the new bailout can be finalized has been agreed in principal.

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