US Dollar to Japanese Yen (USD/JPY) Exchange Rate Forecast to Strengthen on US Non-Manufacturing Composite
The US Dollar to Japanese Yen (USD/JPY) exchange rate strengthened considerably, in the aftermath of a positive US non-manufacturing data publication . The Japanese Yen, meanwhile, has strengthened against many of its major peers after composite and services data moved into expansion territory.
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The US Dollar to Japanese Yen exchange rate is currently trending in the region of 119.6540.
US Dollar (USD) Advances on Domestic Data
Although US economic data produced mixed results on Wednesday, the US Dollar has continued trending higher against its most traded rivals. The most significant US publication, in terms of its impact on US Dollar movement, printed positively. The ISM Non-Manufacturing Composite was forecast to tick higher from 57.1 to 57.5, but the actual result reached 59.3.
Despite the fact that the US Dollar is continuing to trend higher on Wednesday, a disappointing result from labour data may ease pressure on the Federal Reserve to hike rates. Employment Change saw 208,000 newly employed in November, down from 233,000 registered previously and below the market consensus of 222,000.
The US Dollar to Japanese Yen exchange rate has dropped to a low today of 119.1005.
Japanese Yen (JPY) Rebounds on Positive Data
The Japanese Yen has strengthened against some of its peers on Wednesday after domestic data produced positive results. The Services PMI increased from 48.7 to 51.2 and the Composite PMI improved from 49.5 to 50.06. Both the Services and the Composite PMIs moved above the 50 mark which separates growth from contraction.
Commenting on the Japanese Services PMI survey data, Amy Brownbill, Economist at Markit, stated; ‘Japanese services companies registered a return to activity growth after a temporary fall observed in October due to severe weather conditions (typhoons). New orders remained in solid growth territory, with the pace of increase ticking up from October’s reading. Subsequently, employment rose at a slightly faster pace.’
US Dollar to Japanese Yen (USD/JPY) Exchange Rate Forecast to Advance
With the US Dollar enjoying a sustained bullish run amid speculation that the Federal Reserve will hike rates soon, the USD/JPY exchange rate is likely to continue trending higher.
The US Dollar to Japanese Yen exchange rate has climbed to a high today of 119.7133.