The Japanese yen halted its rally today and actually fell against some of its major peers as economic reports were not favorable to the currency. Today’s drop followed Friday’s big rally, meaning that part of today’s losses may be attributed to profit-taking.
Japan’s industrial production rose 0.5 percent in May on a seasonally adjusted basis, while analysts predicted a 0.9 percent increase. Housing starts slumped 15.0 percent last month from a year ago, more than was expected by market participants (10.1 percent).
The yen is currently attempting to hold ground as Friday’s reports led to optimistic outlook for the currency, which did not wane yet despite today’s data. Among them were the inflation report that demonstrated stable price growth and employment data that demonstrated an unexpected drop of the unemployment rate. The Japanese currency is struggling to find a direction as indicators did not provide a clear picture of Japan’s economic performance.
USD/JPY was near 101.33 as of 11:29 GMT today after opening at 101.37. EUR/JPY ticked up a little from 138.34 to 138.40 following the drop to 138.10. GBP/JPY went up from 172.59 to 172.74.
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