Yen takes losses following US news
- Last Updated on 17 February 2012
- Hits: 14
Positive US news caused the safe-haven yen to take significant losses during trading yesterday. The better than expected US Unemployment Claims and Philly Fed Manufacturing Index led to investor risk taking throughout the evening session. The USD/JPY hit a 3 ½ month high before hitting significant resistance close to the 79.00 level. The EUR/JPY also saw gains as a result of the US news, despite the Greek debt crisis that continues to impact the common currency. The pair shot up some 50 pips after Unemployment Claims figure was released.
Today, traders will want to pay attention to another batch of US news. Specifically, the Core CPI figure is forecasted to generate movement in the market. Should the figure come in above expectations, the yen may take further losses to close out the week. That being said, should any additional negative euro-zone statements be released, investors may revert back to safe-haven currencies which could benefit the JPY.