Yen Extends Rise Amid Greek Woes
June 30 2015 - 1:37AM
RTTF2
The Japanese yen continued to be stronger against the other
major currencies in the Asian session on Tuesday, as the ongoing
worries about the looming threat of a Greek debt default and the
possibility of the debt-laden country exiting the eurozone have
increased the demand for the safe-haven currency.
Fears about the deepening Greek crisis have roiled global
markets.
Greece and its creditors have failed to reach an agreement on a
deal to release bailout funds in time for Greece to meet a 1.6
billion euro debt payment to the International Monetary Fund due
later this day.
Greek Prime Minister Alexis Tsipras reportedly said on Monday
that his country will not make the payment to the IMF by the
Tuesday deadline unless Greece strikes a deal with its
creditors.
The safe haven currency's gain came as the latest round of talks
between Greece and its creditors broke down over the weekend.
Tsipras subsequently called for a referendum on the bailout
proposals by creditors on July 5.
Meanwhile, the Japanese stock market rebounded, from a one-week
closing low in the previous session amid concerns about the impact
of the Greek crisis on the global economy. The benchmark Nikkei 225
Index is currently up 34.56 points or 0.17 percent at 20,144.
In other economic news, a preliminary report from the Ministry
of Health, Labor and Welfare showed that a the total labor cash
earnings in Japan rose 0.6 percent year-over-year to JPY 268,389 in
May. The labor cash earnings growth for April was revised to 0.7
percent from a 0.9 percent increase.
Monday, the yen rose 1.06 percent against the euro, 1.13 percent
against the pound, 1.03 percent against the U.S. dollar and 0.05
percent against the Swiss franc.
In the Asian trading today, the yen rose to nearly a 1-1/2-month
high of 98.38 against the Canadian dollar, from yesterday's closing
value of 98.77. The yen may test resistance near the 97.00
region.
The yen advanced to 136.66 against the euro, 192.16 against the
pound and 131.73 against the Swiss franc, from yesterday's closing
quotes of 137.65, 192.73 and 132.43, respectively. If the yen
extends its uptrend, it is likely to find resistance around 131.00
against the euro, 188.00 against the pound and 128.00 against the
franc.
Against the U.S., the Australia and the New Zealand dollars, the
yen edged up to 122.19, 93.66 and 83.10 from yesterday's closing
quotes of 122.52, 94.08 and 83.92, respectively. On the upside,
120.00 against the greenback, 91.50 against the aussie and 82.00
against the kiwi are seen as the next resistance level for the
yen.
Looking ahead, German retail sales for may is slated for release
at 2:00 am ET.
In the European session, Swiss KOF leading indicator for June,
German unemployment rate for June, third estimate of U.K first
quarter GDP, U.K. index of services for April and flash Eurozone
CPI for June and unemployment rate for May are also set to be
announced.
At 4:40 am ET, Reserve Bank of Australia Governor Glenn Stevens
is expected to speak at an event hosted by the Official Monetary
and Financial Institutions Forum in London.
Around the same time, Bank of England's Paul Fisher will deliver
a speech at the Financial Times Future of Insurance event, in
London
In the New York session, Canada GDP for April, U.S.
S&P/Case-Shiller home price index for April, U.S. Chicago PMI
and U.S. consumer confidence, both for June, are set to be
published
At 7:00 am ET, Bank of England Chief Economist Andy Haldane is
expected to speak at the Open University in London.
An hour later, European Central Bank Governing Council member
Ewald Nowotny will give a keynote speech at "Raiffeisen Bank
International-Summer Talk" in Vienna.
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