Yen Drops Amid Risk Appetite
06 July 2020 - 2:00PM
RTTF2
The Japanese yen depreciated against its major counterparts in
the Asian session on Monday, as hopes for fiscal stimulus measures
helped shrugged off worries about a rise in coronavirus cases in
the U.S. and other parts of the world.
Lockdown restrictions eased further in Europe, with England
embarking on perhaps its biggest lockdown easing yet as pubs and
hairdressers reopen for the first time since late March.
Starting July 1, the European Union opened its borders to
travelers from some third countries where the coronavirus outbreak
is considered to be under control.
The World Health Organization said that more than 200,000
coronavirus cases were confirmed worldwide on Saturday, marking the
highest single-day total since the start of the pandemic.
The yen fell to a 5-day low of 107.77 against the greenback and
near a 3-week low of 121.62 against the euro, off its early highs
of 107.43 and 120.78, respectively. The yen is seen finding support
around 110.00 against the greenback and 123 against the euro.
Reversing from its early highs of 113.62 against the franc and
133.97 against the pound, the yen declined to near a 5-week low of
114.25 and a 4-day low of 134.68, respectively. The yen is likely
to challenge support around 117.00 against the franc and 139.00
against the pound, if it drops again.
The yen slipped to a 5-day low of 79.64 against the loonie, near
4-week lows of 75.16 against the aussie and 70.67 against the kiwi,
after rising to 79.20, 74.45 and 70.09, respectively in early
deals. The next possible support for the yen is seen around 81.00
against the loonie, 77 against the aussie and 72.00 against the
kiwi.
Looking ahead, U.K. construction PMI for June and Eurozone
retail sales for May are due in the European session.
The U.S. ISM non-manufacturing composite index for June will be
out in the New York session.
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