Japanese Yen Trades with Losses During Wednesday’s Asian Session

The Japanese yen started the Wednesday’s session in the red across the board. The positive market sentiment was the likely reason for the losses of the safe-haven currency, though negative macroeconomic data might have played its part as well.
Japan’s Cabinet Office reported that the seasonally adjusted number of core machinery orders increased by 7.6% in October from September. While it was a better reading than September’s drop by 18.3%, the increase failed to meet the analysts’ average projection of a 10.2% growth.
Released on Monday, a report showed that Japanese gross domestic product fell 0.6% in the third quarter of this year from the previous three months. The decrease was bigger than 0.5% predicted by economists and 0.3% registered in the second quarter.
Also on Monday, data from the Ministry of Finance showed that the current account shrank from ‎¥1.33 trillion in September to â€ŽÂ¥1.21 trillion in October. The average forecast had promised a better figure of â€ŽÂ¥1.29 trillion.
Demand for assets considered to be safe was limited due to the news about positive developments in the US-China trade relationships. Investors were somewhat nervous, though, after the US President Donald Trump threatened to shut down the government if it refuses to fund the wall between the United States and Mexico.
USD/JPY edged up from 113.36 to 113.45 as of 1:09 GMT today. EUR/JPY rose from 128.30 to 128.54. GBP/JPY advanced from 141.53 to 141.82.

If you have any questions, comments or opinions regarding the Japanese Yen,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *

eighty four − 77 =