Japanese Yen Weakens Amid Rising Risk Appetite
07 May 2021 - 01:28PM
RTTF2
The Japanese yen slipped against its major counterparts in the
Asian session on Friday, as Asian markets followed Wall Street
higher after a survey showed China's services sector expanded at
the sharpest pace in four months in April.
The Caixin China services purchasing managers index climbed to
56.3 from 54.3 in March. Separately, official data showed that
China's exports and imports grew faster than expected in April.
Investors await the release of U.S. jobs data due out later in
the day for more insights into the strength of the global
recovery.
Economists expect U.S. employment to jump by 978,000 jobs in
April after an increase of 916,000 jobs in May. The unemployment
rate is expected to dip to 5.8 percent from 6.0 percent.
The latest survey from Jibun Bank showed that Japan's services
sector continued to contract in April, albeit at a slower pace,
with a services PMI score of 49.5.
That's up from 48.3 in March, although it remains slightly below
the boom-or-bust line of 50 that separates expansion from
contraction.
The yen fell to 109.20 against the greenback, from an early
4-day high of 108.94. The yen is seen finding support around the
111.00 mark.
The yen declined to 131.72 against the euro and 151.85 against
the pound, off its prior highs of 131.48 and 151.40, respectively.
The next likely support for the yen is seen around 133.00 against
the euro and 154.00 against the pound.
The yen reversed from its early highs of 120.05 against the
franc and 89.61 against the loonie, dropping to 120.28 and 89.84,
respectively. The yen may challenge support around 124.00 against
the franc and 92.00 against the loonie.
In contrast, the yen rose to 78.79 against the kiwi and 84.73
against the aussie, from its early low of 79.03 and a 1-1/2-month
low of 85.02, respectively. The yen is likely to face resistance
around 75.00 against the kiwi and 82.00 against the aussie, if it
gains again.
Looking ahead, U.K. construction PMI for April is due out in the
European session.
U.S. and Canadian jobs data and Canada Ivey PMI, all for April,
as well as U.S. wholesale inventories and consumer credit for March
will be out in the New York session.
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