Yen Falls Amid Risk Appetite
March 13 2024 - 3:32AM
RTTF2
The Japanese yen weakened against other major currencies in the
European session on Wednesday, as investors digested mixed earnings
results and looked ahead to the release of more U.S. data this week
for clues on when the Federal Reserve will begin cutting interest
rates.
Meanwhile, new data showed earlier today that German wholesale
prices continued to decline in February.
Wholesale prices dropped 3.0 percent on a yearly basis, sharper
than the 2.7 percent fall in January.
Elsewhere, data showed the U.K. economy grew modestly in
January, after falling into a technical recession in the second
half of last year.
GDP posted an expansion of 0.2 percent in January, reversing a
0.1 percent fall in December, driven by services and construction
output.
In the Asian session today, the yen traded higher against its
major rivals. In the European trading now, the yen fell to a 5-day
low of 161.73 against the euro, from an early high of 160.90. On
the downside, 163.00 is seen as the next support level for the
yen.
Against the pound, the U.S. dollar and the Swiss franc, the yen
slipped to 189.26, 148.05 and 168.50 from early highs of 188.42,
147.24 and 167.82, respectively. If the yen extends its downtrend,
it is likely to find support around 192.00 against the pound,
150.00 against the greenback and 170.00 against the franc.
Against the Australia and the Canadian dollars, the yen slid to
5-day lows of 97.80 and 109.75 from early highs of 97.24 and
109.13, respectively. The yen may test support near 99.00 against
the aussie and 111.00 against the loonie.
Moving away from an early high of 90.53 against the NZ dollar,
the yen dropped to a 2-day low of 91.12. The yen is likely to find
support near the 93.00 region.
Looking ahead, U.S. MBA mortgage approvals data, U.K. NIESR
monthly GDP tracker and U.S. EIA crude oil data are slated for
release in the New York session.
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