USD/JPY Exchange Rate Recovers from Monthly-Low on US Factory Output
Mixed American economic data on Thursday has caused the US Dollar to fluctuate against its major peers. However, a positive surge from Wednesday’s Beige Book publication and Thursday’s factory output has enabled a fractional US Dollar recovery. Meanwhile, the Japanese Yen has strengthened on Thursday as a result of cautious trading.
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The US Dollar to Japanese Yen exchange rate is currently trending in the region of 105.9819.
In the aftermath of the publication of the Federal Reserve Beige Book on Wednesday evening the US Dollar strengthened against the majority of its most traded currency competitors. ‘Most Districts reported overall growth in consumer spending that ranged from slight to moderate,’ the Federal Reserve said, adding their reports were generally in line with comments gathered in the previous Beige Book.
Japanese economic data on Wednesday was generally negative, although didn’t have enough of an impact on the Yen to outweigh its safe-haven qualities. Despite a decline in Capacity Utilisation, Industrial Production and Machine Tool Orders the Yen appreciated in a risk-off environment.
The US Dollar to Japanese Yen exchange rate has dropped to a low today of 105.5388.
Thursday has seen the US Dollar exchange rate fluctuate due to a mixed set of ecostats. An initial downtrend was as a result of a rise in Continuing Claims, although a decline in Initial Jobless Claims considerably limited any losses.
Shortly after, improved factory output as illustrated by positive results in industrial and manufacturing production reversed the momentum and allowed the US Dollar to appreciate.
A downtick in the Housing Market index and an improvement over the market consensus in the Philadelphia Fed initiated yet more uncertainty as to the direction the Dollar should move.
Japanese data on Thursday has been inconsequential and unable to overshadow risk aversion. Tokyo Condominium Sales increased from -49.1% to -44.1%.
Forecast for the US Dollar to Japanese Yen Exchange Rate
Heightened confusion surrounding the US Dollar and its warranted position on the currency market makes it tricky to forecast. However, US data on Friday definitely has the weighting to provoke volatility.
Perhaps the most significant of these publications is the University of Michigan Confidence Index which is forecast to decline from 84.6 to 84.1. Additionally the Building Permits and Housing Starts publications will be of interest to those trading with the US Dollar.
Japanese Yen movement is most likely to be dictated by trader risk aversion strategies. However the domestic Foreign Bonds and Foreign Stocks data might provoke changes.