Yen Slides Amid Risk Appetite
August 30 2016 - 12:25AM
RTTF2
The Japanese yen weakened against the other major currencies in
the early European session on Tuesday amid risk appetite, as oil
prices rebounded.
The U.K.'s FTSE 100 index is currently up 0.01 percent or 0.57
points at 6,838, France's CAC 40 index is up 0.99 percent or 43.77
points at 4,468 and Germany's DAX is up 0.83 percent or 87.84
points at 10,632.
Meanwhile, investors turned skeptical about the Federal
Reserve's plans for raising interest rates.
Investors look ahead to the all-important U.S. jobs report due
at the end of the week for clarity on the likely timing of the next
increase in the Fed funds rate.
It is believed that the non-farm payroll report could have a
significant impact on the interest rate outlook going into the next
Federal Reserve meeting in September.
Crude oil for October delivery are currently up $0.36 to $47.34
a barrel. The crude oil prices rose amid renewed concerns about an
oil glut.
In the Asian trading today, the yen traded higher against its
major rivals.
In the early European session, the yen fell to a 3-week low of
102.45 against the U.S. dollar, from an early 4-day high of 101.75.
The yen may test support near the 106.00 region.
Against the pound and the euro, the yen dropped to 134.03 and
114.36 from an early 4-day highs of 133.34 and 113.85,
respectively. If the yen extends its downtrend, it is likely to
find support around 129.00 against the pound and 118.00 against the
euro.
Against the Swiss franc and the Canadian dollar, the yen slipped
to 104.56 and 78.53 from an early 4-day highs of 104.03 and 78.19,
respectively. On the downside, 109.00 against the franc and 82.00
against the loonie are seen as the next support level for the
yen.
The yen edged down to 74.09 against the NZ dollar, from an early
high of 73.84. The yen is likely to find support around the 76.00
area. Looking ahead, Eurozone business climate index for August is
slated for release shortly.
In the New York session, flash German CPI data for August,
Canada industrial product and raw materials price indexes for July,
U.S. S&P/Case-Shiller home price index for June and U.S.
consumer confidence index for August, are set to be published.
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