The yen weakened further in Monday’s Asian session after the G7 meeting held over the weekend did not result in any criticism of Japan’s policies that has resulted in a weaker currency.
Some countries have slammed Japan for deliberately targeting the yen’s exchange rate but the G7 have reaffirmed that this is in line with the nation’s needs to fight deflation and stimulate the economy.
The dollar broke past 102 yen to trade higher than last week and is expected to gain upward momentum again. USDJPY hit a high of 102.13 before steadying the rest of the session in a very tight range at 101.85 yen.
The US currency has maintained its strength again most counterparts after a huge surge at the end of last week when it was propelled higher by strong jobs related data.
The dollar breached the 100 yen level on Thursday for the first time in four years and has continued to advance since then. The improving US labor market, highlighted by a drop in jobless claims last week and strong nonfarm payrolls the week before as well as the diverging views on policy between the Federal Reserve and other central banks has helped ignite dollar strength.
The Asian session resulted in most currency pair consolidating as the dollar held onto gains. A light economic calendar kept the session quiet.
EURUSD traded a tight 18-pip range between $1.2959 and $1.2976, remaining near a one-month low reached on Friday.
GBPUSD traded near a 2-1/2 week low of $1.5313 reached on Friday when sterling was pressured after disappointing UK trade data.
Later in the day, US retail sales data will be released. Any positive data cold give further strength in the dollar.
The yen weakened further in Monday’s Asian session after the G7 meeting held over the weekend did not result in any criticism of Japan’s policies that has resulted in a weaker currency.
Some countries have slammed Japan for deliberately targeting the yen’s exchange rate but the G7 have reaffirmed that this is in line with the nation’s needs to fight deflation and stimulate the economy.
The dollar broke past 102 yen to trade higher than last week and is expected to gain upward momentum again. USDJPY hit a high of 102.13 before steadying the rest of the session in a very tight range at 101.85 yen.
The US currency has maintained its strength again most counterparts after a huge surge at the end of last week when it was propelled higher by strong jobs related data.
The dollar breached the 100 yen level on Thursday for the first time in four years and has continued to advance since then. The improving US labor market, highlighted by a drop in jobless claims last week and strong nonfarm payrolls the week before as well as the diverging views on policy between the Federal Reserve and other central banks has helped ignite dollar strength.
The Asian session resulted in most currency pair consolidating as the dollar held onto gains. A light economic calendar kept the session quiet.
EURUSD traded a tight 18-pip range between $1.2959 and $1.2976, remaining near a one-month low reached on Friday.
GBPUSD traded near a 2-1/2 week low of $1.5313 reached on Friday when sterling was pressured after disappointing UK trade data.
Later in the day, US retail sales data will be released. Any positive data cold give further strength in the dollar.
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