US Session – USDJPY tumbles on weak US retail sales and sentiment data
April 12, 2013 4:59 pm
The dollar plunged against the yen on Friday after weak US economic data raised concerns that economy is struggling to recover and hasn’t performed as well as some analysts believed recently.
Americans view of the US economy has grown more pessimistic, as shown by the Thomson Reuters/University of Michigan preliminary index of consumer sentiment which dropped to a nine-month low.
The survey showed the index fell to 72.3 in April from 78.6 a month earlier. Tax hikes early this year have had a large effect on consumer confidence.
Meanwhile separate data showed retail sales in March fell unexpectedly by the most in nine months as a result of slowing employment in the US. This reduced household income and consequently led to a reduction on consumer spending.
Retail sales dropped 0.4 percent, which is the biggest drop since June, and followed a 1 percent gain in February.
The weak data could make the US Federal Reserve consider to maintain its current ultra-easy accommodative monetary policy. Such quantitative easing tends to weigh on the dollar.
USDJPY tumbled to a low of 98.66 yen, a drop of 1.1 percent from the early day high of 99.78 yen.
Yesterday the dollar hit a four-year high against the Japanese currency which has been hurt by the recent Bank of Japan monetary policy measures to fight deflation.
The weaker dollar helped euro recover some early day losses and lifted EURUSD to $1.3099 from a low of $1.3036.
EURGBP climbed back up from 0.8488 to 0.8526.
GBPUSD has been steady between $1.5342 and $1.5382.
Gold has been dropping so fast all day, reaching a low of $1,492.15, down $70 from a high of $1,564.46. This is the lowest level since July 2011.
Gold recently has not appeared to be responding adequately to the current financial and geopolitical situation. It seems that gold investors have created a view that the precious metal is no longer a safe haven.
Oil sank to an eight-month low near $90.26 a barrel as the outlook for global oil demand growth dimmed.
The International Energy Agency (IEA) lowered its 2013 global oil demand growth estimate, following similar moves by the U.S. Energy Information Administration (EIA) and the Organization of the Petroleum Exporting Countries (OPEC).
The dollar plunged against the yen on Friday after weak US economic data raised concerns that economy is struggling to recover and hasn’t performed as well as some analysts believed recently.
Americans view of the US economy has grown more pessimistic, as shown by the Thomson Reuters/University of Michigan preliminary index of consumer sentiment which dropped to a nine-month low.
The survey showed the index fell to 72.3 in April from 78.6 a month earlier. Tax hikes early this year have had a large effect on consumer confidence.
Meanwhile separate data showed retail sales in March fell unexpectedly by the most in nine months as a result of slowing employment in the US. This reduced household income and consequently led to a reduction on consumer spending.
Retail sales dropped 0.4 percent, which is the biggest drop since June, and followed a 1 percent gain in February.
The weak data could make the US Federal Reserve consider to maintain its current ultra-easy accommodative monetary policy. Such quantitative easing tends to weigh on the dollar.
USDJPY tumbled to a low of 98.66 yen, a drop of 1.1 percent from the early day high of 99.78 yen.
Yesterday the dollar hit a four-year high against the Japanese currency which has been hurt by the recent Bank of Japan monetary policy measures to fight deflation.
The weaker dollar helped euro recover some early day losses and lifted EURUSD to $1.3099 from a low of $1.3036.
EURGBP climbed back up from 0.8488 to 0.8526.
GBPUSD has been steady between $1.5342 and $1.5382.
Gold has been dropping so fast all day, reaching a low of $1,492.15, down $70 from a high of $1,564.46. This is the lowest level since July 2011.
Gold recently has not appeared to be responding adequately to the current financial and geopolitical situation. It seems that gold investors have created a view that the precious metal is no longer a safe haven.
Oil sank to an eight-month low near $90.26 a barrel as the outlook for global oil demand growth dimmed.
The International Energy Agency (IEA) lowered its 2013 global oil demand growth estimate, following similar moves by the U.S. Energy Information Administration (EIA) and the Organization of the Petroleum Exporting Countries (OPEC).
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