Yen Advances As Most Asian Markets Fall
13 November 2017 - 1:49PM
RTTF2
The Japanese yen climbed against its major counterparts in late
Asian deals on Monday, reversing early losses, as most Asian shares
declined following the negative cues from Wall Street on Friday
amid worries about the fate of proposed U.S. tax reform. Investors
focused on ability of the Republicans to push through their tax
overhaul this year. Last week, the Senate Republicans unveiled
their version of the tax reform plan that had differences from the
House of Representatives' version. With few signs of compromise,
investors are worried over possibility of a delay in the
legislation that is planned to pass before the year end. Data from
the Bank of Japan showed that Japan's producer prices rose 0.3
percent on month in October.
That exceeded expectations for a gain of 0.1 percent and was
unchanged from the September reading following an upward revision
from 0.2 percent.
The currency showed mixed trading on Friday. While it held
steady against the greenback and the franc, it dropped against the
euro and the pound.
The yen rose to 113.38 against the greenback and 132.16 against
the euro, off its early 4-day low of 113.71 and a weekly low of
132.60, respectively. The next possible resistance for the yen is
seen around 112.00 against the greenback and 131.00 against the
euro.
The yen advanced to 4-day highs of 113.82 against the franc and
148.78 against the pound, from its early lows of 114.08 and 149.68,
respectively. If the yen rises further, 111.00 and 147.00 are
likely seen as its next resistance levels against the franc and the
pound, respectively.
The yen bounced off to 78.59 against the kiwi and 89.41 against
the loonie, from its early lows of 78.80 and 89.61, respectively.
On the upside, 77.00 and 88.00 are possibly seen as the next
resistance levels for the yen against the kiwi and the loonie,
respectively.
The yen rose back to 86.88 against the aussie, just few pips
short of its early 4-day high of 86.80. This may compared to a low
of 87.09 hit at 10:55 pm ET. Continuation of the yen's uptrend may
see it challenging resistance around the 85.00 region.
The Reserve Bank of Australia Deputy Governor Guy Debelle said
that there has been a solid upward trajectory in non-mining
business investment over the past couple of years.
Earlier non-mining investment was weak due to firms' subdued
expectations of future demand, while mining investment strengthened
on higher expectations, Debelle said.
Looking ahead, the European Central Bank Vice President Vitor
Constancio gives Keynote speech at Opening Conference of 20th Euro
Finance Week in Frankfurt, Germany, at 4:00 am ET.
In the New York session, U.S. budget statement for October is
due.
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