Investing.com - The U.S. dollar rose to an eight-day high against the yen on Thursday, erasing earlier losses, as the greenback found support after positive U.S. employment data eased expectations for further monetary easing measures by the Federal Reserve.
USD/JPY pulled away from 79.56, the pair’s lowest since July 3, to hit 80.00 during European afternoon trade, adding 0.15%.
The pair was likely to find support at 79.40, the low of July 3 and resistance at 80.38, the high of May 17.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 30 fell by 14,000 to a seasonally adjusted 374,000, compared to expectations for a decline of 3,000 to 385,000.
The previous week’s figure was revised up to 388,000 from a previously reported 386,000.
The data came after payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 176,000 in June, easily surpassing expectations for an increase of 105,000.
The previous month’s figure was revised down to a gain of 136,000 from a previously reported increase of 133,000.
Investors had been eyeing Thursday’s U.S. data amid speculation that the Federal Reserve could implement a third round of quantitative easing to shore up the economy, which has been hit by the ongoing crisis in the euro zone.
Elsewhere, the yen was sharply higher against the euro with EUR/JPY tumbling 1%, to hit 99.07.
Also Thursday, the European Central Bank cut its benchmark interest rate by 0.25%, bringing rates to a record low 0.75% in a bid to shore up economic growth in the euro zone.
The central bank also lowered its marginal lending to 1.50% from 1.75% and the deposit facility rate to 0% from 0.25%.
Later in the day, the Institute of Supply Management was also to release a report on U.S. service sector activity.
USD/JPY pulled away from 79.56, the pair’s lowest since July 3, to hit 80.00 during European afternoon trade, adding 0.15%.
The pair was likely to find support at 79.40, the low of July 3 and resistance at 80.38, the high of May 17.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 30 fell by 14,000 to a seasonally adjusted 374,000, compared to expectations for a decline of 3,000 to 385,000.
The previous week’s figure was revised up to 388,000 from a previously reported 386,000.
The data came after payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 176,000 in June, easily surpassing expectations for an increase of 105,000.
The previous month’s figure was revised down to a gain of 136,000 from a previously reported increase of 133,000.
Investors had been eyeing Thursday’s U.S. data amid speculation that the Federal Reserve could implement a third round of quantitative easing to shore up the economy, which has been hit by the ongoing crisis in the euro zone.
Elsewhere, the yen was sharply higher against the euro with EUR/JPY tumbling 1%, to hit 99.07.
Also Thursday, the European Central Bank cut its benchmark interest rate by 0.25%, bringing rates to a record low 0.75% in a bid to shore up economic growth in the euro zone.
The central bank also lowered its marginal lending to 1.50% from 1.75% and the deposit facility rate to 0% from 0.25%.
Later in the day, the Institute of Supply Management was also to release a report on U.S. service sector activity.