US dollar retreats after weak economic data; yen gets minor relief
Yen rises, but not far from 38-year low vs dollar
U.S. continuing claims rise in latest week
U.S. durables fall unexpectedly
Final U.S. GDP number for Q1 down from Q4
Recasts, adds new comment, U.S. data, updates prices
By Gertrude Chavez-Dreyfuss and Amanda Cooper
NEW YORK/LONDON, June 27 (Reuters) - The yen edged up from a 38-year low against the U.S. dollaron Thursday, helped by softening U.S. economic data, although traders remainedon high alertfor any signs of Japanese interventionto prop up the currency.
In the broader market, the dollar fell against a basket of currencies,as U.S. Treasury yields slippedfollowing the data.
U.S. reports showed that jobless claims for state unemployment benefits dropped 6,000 to 233,000 for the week ended June 22. However, the number of people receiving benefits after an initial week of aid increased 18,000 to 1.839 million during the week ending June 15.
At the same time, new orders for key U.S.-manufactured capital goods unexpectedly fell in May, suggesting business spending on equipment weakened in the second quarter.
Non-defense capital goods orders excluding aircraft, a closely-watched proxy for business spending plans, dropped 0.6% last month, the data showed. Economists polled by Reuters had forecast core capital goods orders edging up 0.1%.
"This morning's data deluge helped puncture the 'U.S. exceptionalism' trade, knocking the greenback lower," said Karl Schamotta, chief market strategist, at Corpay in Toronto, referring to the U.S. outperformance with respect to the rest of the world.
"Odds on a cut at the Federal Reserve's September meeting are firming and yields are cautiously coming down across the curve as market participants position ahead of tomorrow’s personal consumption expenditures release."
More data showed that economic growth moderated sharply in the first quarter. Gross domestic product increased at a slightly upwardly revised 1.4% annualized rate last quarter, but down from the 3.4% registered in last three months of 2023.
The GDP report also showed weak consumer spending.
YEN WOES
In late morning trading, the yen gained 0.2% against the greenback to 160.555 per dollar JPY=EBS,having fallen to a low of 160.88 on Wednesday, its weakest since 1986.
The Japanese currency has fallen some 2% this month and 12% for the year against a resilient dollar, as it continues to be hammered by stark interest rate differentials between the U.S. and Japan. That has encouraged investors to use the yen as funding currencyfor carry trades.
In a carry trade, an investor borrows in a currency with low interest rates and invests the proceeds in higher-yielding assets.
Still, the yen's latest slide past the key 160 per dollar level has kept traders nervous over possible intervention from Tokyo, after authorities spent 9.79 trillion yen ($60.94 billion) at the end of April and in early May to push the yen up 5% from its 34-year low of 160.245 then.
"There seems little chance that the Bank of Japan and its allies can shore up the yen without incurring horrendous costs, or jacking up rates to such an extent that they destroy the economy," Trade Nation senior market analyst David Morrison said.
Analysts said while the risk of intervention has increased, Japanese authorities could be holding out for Friday's release of the U.S. personal consumption expenditures (PCE) price index before entering the market. Still, any intervention would likely have a limited effect, they said.
In other currencies,sterling GBP=D3 rose0.3% to$1.2651while the euro EUR=EBS rose 0.3%to $1.0710.
The euro is on track to lose roughly 1.4% this month, weighed down by political turmoil in the euro zone in the lead up to France's snap election set to begin this weekend.
The dollar index =USD fell 0.2%to 105.84, not far from a nearly two-month high of 106.13 on Wednesday.
The Swedish crown weakened after the central bank held its key interest rate at 3.75% on Thursday, as expected, and said if inflation prospects remain the same, the policy rate could be cut two or three times during the second half of the year.
The dollar was last 0.3%higher at 10.608 crowns SEK=D3.
Wednesday was the last day that investors could trade currencies for the quarter, given that spot foreign exchange settlement takes two business days.
Trading of U.S. stocks, however, moved to a shorter settlement cycle last month, known as T+1.
Currency bid prices at 27 June 03:23 p.m. GMT | |||||||
Description | RIC | Last | U.S. Close Previous Session | Pct Change | YTD Pct | High Bid | Low Bid |
Dollar index | =USD | 105.88 | 106.05 | -0.15% | 4.45% | 106.08 | 105.7 |
Euro/Dollar | EUR=EBS | 1.0704 | 1.0681 | 0.22% | -3.03% | $1.0726 | $1.0677 |
Dollar/Yen | JPY=D3 | 160.65 | 160.79 | -0.09% | 13.89% | 160.68 | 160.32 |
Euro/Yen | EURJPY= | 1.0704 | 171.72 | 0.13% | 10.49% | 172.16 | 171.39 |
Dollar/Swiss | CHF=EBS | 0.8977 | 0.8975 | 0.01% | 6.64% | 0.8981 | 0.8959 |
Sterling/Dollar | GBP=D3 | 1.2646 | 1.2622 | 0.21% | -0.61% | $1.267 | $1.0677 |
Dollar/Canadian | CAD=D3 | 1.369 | 1.3703 | -0.08% | 3.29% | 1.3712 | 1.3676 |
Aussie/Dollar | AUD=D3 | 0.6649 | 0.6648 | 0.05% | -2.46% | $0.6673 | $0.664 |
Euro/Swiss | EURCHF= | 0.9607 | 0.9584 | 0.24% | 3.46% | 0.962 | 0.9579 |
Euro/Sterling | EURGBP= | 0.8461 | 0.8461 | 0.01% | -2.38% | 0.8475 | 0.8454 |
NZ Dollar/Dollar | NZD=D3 | 0.6088 | 0.6083 | 0.11% | -3.63% | $0.6109 | 0.6069 |
Dollar/Norway | NOK= | 10.6552 | 10.6779 | -0.21% | 5.13% | 10.6923 | 10.632 |
Euro/Norway | EURNOK= | 11.4056 | 11.4066 | -0.01% | 1.62% | 11.418 | 11.3778 |
Dollar/Sweden | SEK= | 10.6172 | 10.5736 | 0.41% | 5.47% | 10.6182 | 10.548 |
Euro/Sweden | EURSEK= | 11.366 | 11.2899 | 0.67% | 2.16% | 11.369 | 11.2837 |
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Gertrude Chavez-Dreyfuss in New York and Amanda Cooper in London; Additional reporting by Rae Wee and Ankur Banerjee in Singapore; Editing by Shri Navaratnam, Jacqueline Wong and Sharon Singleton
Relaterade tillgångar
Senaste nytt
Ansvarsfriskrivning: XM Group-enheter tillhandahåller sin tjänst enbart för exekvering och tillgången till vår onlinehandelsplattform, som innebär att en person kan se och/eller använda tillgängligt innehåll på eller via webbplatsen, påverkar eller utökar inte detta, vilket inte heller varit avsikten. Denna tillgång och användning omfattas alltid av i) villkor, ii) riskvarningar och iii) fullständig ansvarsfriskrivning. Detta innehåll tillhandahålls därför uteslutande som allmän information. Var framför allt medveten om att innehållet på vår onlinehandelsplattform varken utgör en uppmaning eller ett erbjudande om att ingå några transaktioner på de finansiella marknaderna. Handel på alla finansiella marknader involverar en betydande risk för ditt kapital.
Allt material som publiceras på denna sida är enbart avsett för utbildnings- eller informationssyften och innehåller inte – och ska inte heller anses innehålla – rådgivning och rekommendationer om finansiella frågor, investeringsskatt eller handel, dokumentation av våra handelskurser eller ett erbjudande om, eller en uppmaning till, en transaktion i finansiella instrument eller oönskade finansiella erbjudanden som är riktade till dig.
Tredjepartsinnehåll, liksom innehåll framtaget av XM såsom synpunkter, nyheter, forskningsrön, analyser, kurser, andra uppgifter eller länkar till tredjepartssajter som återfinns på denna webbplats, tillhandahålls i befintligt skick, som allmän marknadskommentar, och utgör ingen investeringsrådgivning. I den mån som något innehåll tolkas som investeringsforskning måste det noteras och accepteras att innehållet varken har varit avsett som oberoende investeringsforskning eller har utarbetats i enlighet med de rättsliga kraven för att främja ett sådant syfte, och därför är att betrakta som marknadskommunikation enligt tillämpliga lagar och föreskrifter. Se till så att du har läst och förstått vårt meddelande om icke-oberoende investeringsforskning och riskvarning om ovannämnda information, som finns här.
