U.S. Dollar Reaches 2-Month High Against Japanese Yen
April 2, 2014 8:24 am
The dollar rallied to the topmost performing mark in more than two months versus the yen before a private report today that may reveal stronger U.S. jobs development.
The greenback poised for its largest one-day hike in two weeks against the New Zealand dollar before numbers tomorrow that may reveal service industries, the biggest part of the world’s largest economy, bolstered and a government report on April 4 that may indicate employers increased hiring. The yen pulled back versus the euro as advances in Japanese stocks damped demand for the local currency and before the European Central Bank decides policy tomorrow.
“The U.S. dollar is super sensitive to data now that the Federal Reserve has tried to guide markets as to when they’ll put up rates,” said Chris Weston, a chief market strategist at IG Ltd. in Melbourne. “People don’t want to get left behind if we get a really strong jobs number on Friday. That could be the catalyst for a longer-term rally.”
The dollar zoomed 0.2 percent higher to 103.85 yen as of 11:25 a.m. in Tokyo, after reaching 103.94, the topmost level since January 23. It spiked up 0.5 percent to 85.95 cents per New Zealand dollar, set for the largest hike since March 19.
The yen relinquished 0.3 percent to 143.33 per euro. Europe’s shared currency inched up 0.1 percent to $1.3802 after surging 0.4 percent over the past three days.
Increased Jobs
Data today from the ADP Research Institute may display firms in the U.S. provided an extra 195,000 jobs in March after lifting positions by 139,000 the past month, according to the median projection of economists surveyed by Bloomberg News.
The Institute for Supply Management’s non-manufacturing index possibly rallied to 53.5 last month from 51.6 in February, the weakest since 2010, analysts in a separate poll estimated. The Tempe, Arizona-based group will publish the numbers tomorrow.
Economists projected the Labor Department will say on April 4 U.S. employers provided 200,000 jobs in March after lifting positions by 175,000 the past month.
“The focus this week is on the U.S. economy,” said Etsuko Yamashita, chief economist at Sumitomo Mitsui Banking Corp. in New York. “If we see some small improvement in the U.S. data, we should see continued momentum for dollar buying.”
Japan’s Topix index of shares climbed 1.2 percent, while the Nikkei 225 Stock Average jumped 1.5 percent. The MSCI Asia Pacific gauge of regional equities increased with 0.5 percent.
Knee Jerk
“The knee-jerk reaction from foreign-exchange traders is to buy dollar-yen when the Nikkei goes up,” said Sean Callow, a currency strategist at Westpac Banking Corp. in Sydney. “The correlation between dollar-yen and the Nikkei since Abenomics came onto the scene is intact until further notice,” Callow said, referring to Japanese Prime Minister Shinzo Abe’s economic stimulus plan.
ECB policy makers will possibly maintain the region’s standard interest rate at a record-low 0.25 percent tomorrow, according to all but three of the 57 economists surveyed by Bloomberg.
The euro area will possibly stay away from outright deflation as a “soft” recovery gradually trims down spare capacity in the economy, ECB Vice President Vitor Constancio said at a press conference in Athens yesterday.
A primary projection on March 31 showed consumer financial values in the region bolstered 0.5 percent last month from a year earlier after skyrocketing 0.7 percent in February.
The material has been provided by InstaForex Company – www.instaforex.com
The dollar rallied to the topmost performing mark in more than two months versus the yen before a private report today that may reveal stronger U.S. jobs development.
The greenback poised for its largest one-day hike in two weeks against the New Zealand dollar before numbers tomorrow that may reveal service industries, the biggest part of the world’s largest economy, bolstered and a government report on April 4 that may indicate employers increased hiring. The yen pulled back versus the euro as advances in Japanese stocks damped demand for the local currency and before the European Central Bank decides policy tomorrow.
“The U.S. dollar is super sensitive to data now that the Federal Reserve has tried to guide markets as to when they’ll put up rates,” said Chris Weston, a chief market strategist at IG Ltd. in Melbourne. “People don’t want to get left behind if we get a really strong jobs number on Friday. That could be the catalyst for a longer-term rally.”
The dollar zoomed 0.2 percent higher to 103.85 yen as of 11:25 a.m. in Tokyo, after reaching 103.94, the topmost level since January 23. It spiked up 0.5 percent to 85.95 cents per New Zealand dollar, set for the largest hike since March 19.
The yen relinquished 0.3 percent to 143.33 per euro. Europe’s shared currency inched up 0.1 percent to $1.3802 after surging 0.4 percent over the past three days.
Increased Jobs
Data today from the ADP Research Institute may display firms in the U.S. provided an extra 195,000 jobs in March after lifting positions by 139,000 the past month, according to the median projection of economists surveyed by Bloomberg News.
The Institute for Supply Management’s non-manufacturing index possibly rallied to 53.5 last month from 51.6 in February, the weakest since 2010, analysts in a separate poll estimated. The Tempe, Arizona-based group will publish the numbers tomorrow.
Economists projected the Labor Department will say on April 4 U.S. employers provided 200,000 jobs in March after lifting positions by 175,000 the past month.
“The focus this week is on the U.S. economy,” said Etsuko Yamashita, chief economist at Sumitomo Mitsui Banking Corp. in New York. “If we see some small improvement in the U.S. data, we should see continued momentum for dollar buying.”
Japan’s Topix index of shares climbed 1.2 percent, while the Nikkei 225 Stock Average jumped 1.5 percent. The MSCI Asia Pacific gauge of regional equities increased with 0.5 percent.
Knee Jerk
“The knee-jerk reaction from foreign-exchange traders is to buy dollar-yen when the Nikkei goes up,” said Sean Callow, a currency strategist at Westpac Banking Corp. in Sydney. “The correlation between dollar-yen and the Nikkei since Abenomics came onto the scene is intact until further notice,” Callow said, referring to Japanese Prime Minister Shinzo Abe’s economic stimulus plan.
ECB policy makers will possibly maintain the region’s standard interest rate at a record-low 0.25 percent tomorrow, according to all but three of the 57 economists surveyed by Bloomberg.
The euro area will possibly stay away from outright deflation as a “soft” recovery gradually trims down spare capacity in the economy, ECB Vice President Vitor Constancio said at a press conference in Athens yesterday.
A primary projection on March 31 showed consumer financial values in the region bolstered 0.5 percent last month from a year earlier after skyrocketing 0.7 percent in February.
The material has been provided by InstaForex Company – www.instaforex.com
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