Both the Japanese Yen and the US Dollar have benefitted from positive domestic data results on Wednesday. The US Dollar has strengthened against the Yen as a result of higher-weighted data printing above expectations.
The US Dollar to Japanese Yen exchange rate is currently trending in the region of 107.1966.
On Tuesday the US Dollar managed to rebound from a downtrend initiated by futures traders paring bets as to the timing of a Federal Reserve rate hike. The significant uptrend was attributed to positive Existing Home Sales data which showed a healthy increase from -1.8% to 2.4%.
The Japanese Yen also ticked a little higher on Tuesday after the All Industry Activity Index appreciated from -0.2% to -0.1%, despite the median market forecast of a drop to -0.4%.
The US Dollar to Japanese Yen exchange rate has dropped to a low today of 106.6333.
On Wednesday the US Dollar has enjoyed an extension of the gains made on Tuesday as a result of positive economic data. Perhaps most significantly, the Consumer Price Index equalled the previous figure of 1.7% despite the market consensus of a drop to 1.6%. Given that the Federal Reserve have set a 2.0% inflation target it was important for the CPI to hold rather than decline.
To stoke an impressive fire, MBA Mortgage Applications showed an extremely discernible gain from 5.6% to 11.6%.
Wednesday’s Japanese data also printed impressively. Adjusted Merchandise Trade Balance increased from ¥912.4 Billion to ¥1070.1 Billion despite the median market forecast of a shallow rise to ¥918.5 Billion. Additionally, Total Trade Balance completely eclipsed the market consensus which was forecast to drop from ¥949.7 Billion to ¥780.0 Billion, but the actual result increased to ¥958.3 Billion.
The Yen gains, however, have been held back a little as trader risk sentiment improves after geopolitical anxieties took a back seat in trader focus.
In addition, Merchandise Trade Exports increased from -1.3 to 6.9, and Merchandise Imports gained from -1.4 to 6.2.
US Dollar to Japanese Yen Forecast to Fluctuate
With Japanese data printing early on Thursday morning and US data to be released on Thursday afternoon, the USD/JPY exchange rate is likely to fluctuate.
For those invested in the Yen the Buying Foreign Bonds and Foreign Stocks publications will be of interest and are likely to spark volatility.
US Dollar traders will be closely watching the labour market data on Thursday which is likely to cause volatility. Additionally the preliminary Manufacturing PMI figure for October will be of interest.
The US Dollar to Japanese Yen exchange rate has reached a high today of 107.2761.
Japanese Yen (JPY) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Japanese Yen,
,US Dollar,0.0093,
Japanese Yen,,Euro,0.0073,
Japanese Yen,,Pound,0.0058,
Japanese Yen,,Australian Dollar,0.0105,
US Dollar,,Japanese Yen,107.3200,
Euro,,Japanese Yen,135.8231,
Pound Sterling,,Japanese Yen,172.4289,
Australian Dollar,,Japanese Yen,94.3499,
[/table]
