Poor US Data Encourages Traders Stick to Safety of Yen

The Japanese yen advanced today, rising versus the US dollar and the euro, and trading little changed versus the Great Britain pound. The Japanese currency profited from worries created by worse-than-expected macroeconomic data from the United States.
Personal income of US consumers rose 0.4 percent in May, while spending increased by 0.2 percent. While the data was not bad by itself and better than the previous month’s reading, it was still below analysts’ expectations. Today’s data followed yesterday’ terrible report about economic growth that shocked the Forex market and made traders reassess their positions.
Not all US indicators were bad, but the impact of the bad ones was enough to propel the yen higher. The currency was also firm because forecasters promise that tomorrow’s economic data from Japan should be positive.
USD/JPY fell from 101.86 to 101.72, reaching the low of 101.49 intraday, and EUR/JPY declined from 138.81 to 138.44 as of 20:07 GMT today following the drop to 137.92. GBP/JPY traded at 173.18, not far from the opening of 172.92.

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