Friday, 23 June 2017

What’s next? – USDJPY 23.06.17

Posted by Anonymous at 17:58 Labels:

USDJPY

The dollar/yen was trading near breakeven in mid-session on Friday, with the dollar extending losses and the yen gaining ground as demand for safe-haven assets spiked in the last few hours over concerns regarding the China’s regulator and the ongoing crude oil overhang.

China’s central bank seems to be taking an interest on local companies that recently borrowed large amounts of money to acquire assets overseas.

Such actions could be subjected to further control from the national regulator, which is seen as a negative factor for the economy.

Meanwhile, the US dollar index, which gauges the greenback against a basket of six major rivals, was trading 0.40 percent lower as of 10:45 GMT at 96.92. The weakening of the American currency looks a downward correction following the recent rally post-Fed interest rate hike.

Also weighing on the dollar was the manufacturing and services PMIs for June, which came in at 52.1 and 53.0 respectively, both missing expectations of 53.0 and 53.7.

While the dollar is now easing against most of its competitors, the currency is looking to end this week on the upside as Fed’s recent impulse is still partially on.

Plus, weekly jobless claims increased by 3,000 to 241,000 in the week ended June 17, the Labor Department said yesterday. Analysts had forecasted an small growth.

Despite this report, the economy remains near full employment, which continues to support Fed’s monetary normalization plan.

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