Yen Rises Amid Rising Risk Aversion
27 March 2017 - 1:26PM
RTTF2
The Japanese yen strengthened against other major currencies in
the Asian session on Monday amid rising risk aversion, tracking the
lackluster cues from Wall Street Friday after U.S. President Donald
Trump's failure to pass a bill to overhaul the U.S. healthcare
system.
House Republican leaders decided to withdraw Trump's healthcare
bill intended to repeal and replace Obamacare amid indications of a
lack of support. The inability to advance the bill has cast doubt
on Trump's ability to deliver on promises of increased
infrastructure spending, tax cuts and deregulation.
In economic news, the Bank of Japan said that corporate service
prices in Japan were up 0.8 percent on year in February. That
exceeded forecasts for 0.5 percent, which would have been unchanged
from the January reading.
Last Friday, the yen had held steady against its major
rivals.
In the Asian trading, the yen rose to a 5-day high of 138.05
against the pound, from Friday's closing value of 138.83. The yen
is likely to find resistance around the 136.00 area.
Against the euro and the Swiss franc, the yen advanced to 119.60
and 111.63 from last week's closing quotes of 120.18 and 112.26,
respectively. If the yen extends its uptrend, it is likely to find
resistance around 118.00 against the euro and 110.00 against the
franc.
Against the U.S., the Australian, the New Zealand and the
Canadian dollars, the yen climbed to nearly a 5-month high of
110.26, a 3-month high of 83.99, more than a 4-month high of 77.67
and a 5-day high of 82.66 from Friday's closing quotes of 111.31,
84.85, 78.24 and 83.16, respectively. On the upside, 109.00 against
the greenback, 82.00 against the aussie, 76.00 against the kiwi and
81.00 against the loonie are seen as the next resistance levels for
the yen.
Looking ahead, the German Ifo business climate index for March
is due to be released at 4:00 am ET.
At 1:15 pm ET, Federal Reserve Bank of Chicago President Charles
Evans and European Central Bank Chief Economist Peter Praet are
expected to speak about the current economic conditions and
monetary policy at the Global Interdependence Center, in
Madrid.
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