Japanese Yen Advances On Worsening Investor Sentiment
June 23 2021 - 11:04PM
RTTF2
The Japanese yen firmed against its major rivals in the Asian
session on Thursday, as investors digested mixed views from Fed
officials on inflation and focused on more U.S. data for monetary
policy outlook.
Atlanta Fed President Raphael Bostic and Fed Governor Michelle
Bowman said that despite recent price increases likely to be
temporary, it may take longer than anticipated to fade.
Bostic projected a rate hike in late 2022 citing faster growth
and higher inflation.
Bowman did not give any timing for liftoff and suggested that
"it could take some time."
Dallas Fed President Robert Kaplan said that the economy will
likely meet the Fed's requirements for stimulus withdrawal sooner
than thought.
Investors are now pricing in a rate hike in early 2023, instead
of late 2022 seen following the Fed decision.
Data on U.S. jobless claims is due later in the day, while
producer price inflation and consumer spending will be released on
Friday.
The yen reversed from its previous lows of 132.58 against the
euro and 155.14 against the pound, rising to 132.12 and 154.60,
respectively. On the upside, 127.5 and 150 are possibly seen as its
next resistance levels against the euro and the pound,
respectively.
The yen rose to 120.53 against the franc and 110.76 against the
greenback, off its early session's low of 120.99 and more than a
1-year low of 111.12, respectively. The yen is seen finding
resistance around 117.00 against the franc and 109.00 against the
greenback.
The Japanese currency recovered to 90.00 against the loonie,
83.87 against the aussie and 78.11 against the kiwi, after falling
to 90.32 and 1-week lows of 84.17 and 78.35, respectively. If the
yen gains further, it may find resistance around 88.00 against the
loonie, 82.00 against the aussie and 76.00 against the kiwi.
Looking ahead, German Ifo business sentiment index for June will
be released in the European session.
The Bank of England's monetary policy announcement is due at
7:00 am ET. The Monetary Policy Committee is widely expected to
hold the key rate at a record low of 0.10 percent and the
quantitative easing programme at GBP 895 billion.
U.S. final GDP data for the first quarter, weekly jobless claims
for the week ended June 19, durable goods orders and wholesale
inventories for May, as well as Canada manufacturing and wholesale
sales for the same month are due in the New York session.
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