Thursday, 31 August 2017

What’s next? – USDJPY 31.08.17

Posted by Anonymous at 10:24 Labels: what’s next

USDJPY

The dollar/yen was up 0.26 percent as of 05:30 GMT on Wednesday to trade at 110.51, as the greenback extended its recovery in the light of easing geopolitical tensions and better-than-expected economic reports from the United States.

The US dollar index, which tracks the greenback against six major rivals, was trading at 92.94 by the time of this writing, adding 0.12 percent.

In economic news, ADP employment change for August showed a 237,000 jobs build against an expected increase of 185,000. This report anticipates official nonfarm payrolls figures from the Labor Department, which will be released on Friday.

In a separate report, the Commerce Department upgraded the second-quarter gross domestic product from 2.6 percent to 3.0 percent, above expectations of a 2.8 percent revision.

Japanese industrial production dropped 0.8 percent in July, above an originally estimated 0.5 percent draw. Other data in the Asian session included China’s manufacturing and non-manufacturing PMIs, which came in at 51.3 and 53.4 respectively, both below forecasts.

On Wednesday, the greenback rebounded from a two-and-a-half-year low, following the statement of the UN Security Council condemning the latest missile launch by North Korea, which violated Japan’s airspace. The UNSC did not announce actions in response to this event.

Ahead in the day, attention will be directed to the PCE price index for July, initial jobless claims and personal spending figures at 12:30 GMT. Pending home sales are due at 14:00 GMT. Japan will release second-quarter capital spending as of 23:50 GMT.

From a technical perspective, the 110 mark seems to be immediate target for the pair as the upwards movement strengthens on the back of the US dollar. Investors are moving back to risky assets, leaving safe-havens such as the yen or gold behind. Buyers are expected to continue using current levels to get in at competitive prices.

Fort Financial Services