Yen Trades Higher As BoJ Lowers Debt Buying
30 Setembro 2016 - 05:11AM
RTTF2
The Japanese yen traded higher against its major counterparts in
European trading on Friday, as the yields on 10-year Japanese
government bonds edged up after the Bank of Japan said it would
reduce purchases of long-dated government bonds in market
operations in October.
The central bank said that it plans to cut purchases of JGBs
having a maturity of more than 10 years to 300 billion yen in its
first auction in October, from 320 billion yen bonds in
September.
This would be smallest JGB buying since boosting its asset
purchase program in October 2014.
The benchmark yield on 10-year JGBs rose 1.5 basis points to
minus 0.075 percent.
Further underpinning the currency was falling European shares,
as Deutsche Bank's woes deepened and the price of oil took a tumble
after recent sharp gains in reaction to the tentative OPEC deal to
curb oil production.
On the economic front, the Ministry of Economy, Trade and
Industry said that industrial production in Japan advanced 1.56
percent on month in August. That beat forecasts for an increase of
0.5 percent following the 0.4 percent decline in July.
The Ministry of Internal Affairs and Communications said that
the average of household spending in Japan was down 4.6 percent on
year in August, coming in at 276,338 yen. That missed expectations
for a decline of 2.3 percent following the 0.5 percent fall in
July.
The Ministry also said that the jobless rate in Japan came in at
a seasonally adjusted 3.1 percent in August. That was above
forecasts for 3.0 percent, which would have been unchanged from the
previous month.
The currency was weaker against its major rivals in the Asian
session.
The yen reversed from an early low of 101.78 against the
greenback and edged up to 100.75. On the upside, 98.00 is possibly
seen as the next resistance level for the yen.
The yen climbed to a 2-day high of 112.60 against the European
currency, off its early low of 114.12. The yen is seen finding
resistance around the 110.5 region.
The flash estimate from Eurostat showed that euro area inflation
doubled in September and core inflation remained stable.
Inflation rose to 0.4 percent from 0.2 percent in August. This
was the fourth consecutive rise in prices and exceeded the expected
growth of 0.3 percent.
Bouncing off from an early new 2-week low of 105.28 against the
Swiss franc, the yen advanced to 103.66. Continuation of the yen's
uptrend may see it challenging resistance around the 102.00
mark.
Survey data from the KOF Swiss Economic Institute showed that a
measure of the Swiss economic situation rebounded in September,
suggesting that the outlook remains stable.
The KOF economic barometer rose to 101.3 points from 99.7 in
August, revised from 99.8. Economists had expected a score of
100.5.
The yen strengthened to a 3-day high of 130.42 against the
pound, after having fallen to 131.95 at 11:00 pm ET. Further
uptrend is likely to take the yen to a resistance around the 129.00
level.
Data from the Office for National Statistics showed that the
U.K. economy grew more than previously estimated in the second
quarter.
Gross domestic product climbed 0.7 percent sequentially in the
second quarter, slightly revised up from the second estimate of 0.6
percent.
The yen held steady against the loonie and the aussie, after
climbing to a 2-day high of 76.37 and a 3-day high of 76.50 earlier
in the session, respectively. At yesterday's close, the yen was
worth 76.84 against the loonie and 77.13 against the aussie.
Looking ahead, Canada GDP data for August, Canada industrial and
raw materials products price indexes for August, U.S. personal
income and spending data for August, U.S. University of Michigan
final consumer sentiment index for September, U.S. Chicago
purchasing manager index for September and U.S. Baker Hughes rig
count data are set to be announced in the New York session.
At 1:00 pm ET, Federal Reserve Bank of Dallas President Robert
Kaplan will participate in a moderated Q&A session before the
Stemmons Corridor Business Association 35th Annual Meeting, in
Dallas, United States.
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