RTTN: Yen Slides To 1-month Low Against Australian And Canadian Dollars
(RTTNews) - The Japanese yen declined against majors, barring the Swiss franc, on Thursday morning in New York as a better-than expected Chicago business activity index propelled traders to buy riskier-assets.
Optimism generated after the Greek austerity plan approval on Wednesday and European Central Bank President Jean Claude Trichet's continued hawkish comments on inflation strongly hinted that the ECB to hike interest rates next week also boosted sentiments.
Chicago-area business activity unexpectedly expanded at an accelerated pace in the month of June, according to a report released by the Institute for Supply Management - Chicago, with the index of activity rebounding after falling in three consecutive months.
The ISM - Chicago said its business barometer jumped to 61.1 in June from 56.6 in May, with a reading above 50 indicating an increase in business activity. The increase surprised economists, who had expected the index to drop to a reading of 53.0.
The yen slipped to a 1-month low of 83.77 against the Canadian dollar and 86.77 versus the Australian dollar around 10:15 am ET. On the downside, the Japanese currency may find target levels at 87.60 against the aussie and 84.15 versus the loonie.
Canada's relatively robust economy stalled in April, reflecting a decline in manufacturing and finance. Real gross domestic product was unchanged in April after increasing 0.3 percent in March, according to data released by Statistics Canada today.
Economists expected the economy to contract by 0.1 percent, but significant increases in metal and coal mining helped keep GDP nearly unchanged.
Against the NZ dollar, the yen slipped to near 67.0 around 10:20 am ET and this set the lowest level for the domestic unit since June 1. The yen is presently worth 66.95 and a move below the 67.50 support line could set its weakest mark since May 2010.
The yen also reached as low as 80.87 against the US dollar, 117.0 versus the euro and 129.46 against the pound around 10:15 am ET. On the downside, the Japanese unit may find near-term target levels at 129.85 against the pound, 81.0 versus the buck and 117.10 against the euro.
Eurozone annual inflation unexpectedly remained at 2.7 percent in June, flash estimate released by Eurostat, the statistical office of the European Union said today. Economists had expected it to accelerate to 2.8 percent from 2.7 percent in May.
Confidence among British consumers declined more than expected in June after the "feel-good factor" of the extra bank holidays and Royal Wedding that sparked the sharpest jump in sentiment in 18 years in May diminished, results of a key survey showed today.
(RTTNews) - Research firm GfK NOP said that its consumer confidence index slipped to minus 25 in June from minus 21 in May. Economists were looking for a reading of minus 24.
First-time claims for unemployment benefits in the U.S. came in nearly unchanged in the week ended June 25th, according to figures released today by the Labor Department, with claims remaining well above the key 400,000 level.
The report showed that 428,000 people filed new claims for unemployment benefits, a slight tick down from the previous week's unrevised figure of 429,000. Most economists had predicted a larger drop in new claims, expecting the level to fall to 420,000.
On the flip side, the yen edged sharply higher against the Swiss franc due to across the board weakening of the latter. The yen is presently trading at a 1-week low of 95.56 with 95.35 seen as the next likely upside target level.
Switzerland's current account surplus declined in the first quarter of 2011, to reach its lowest level since the third quarter of 2009, data from the Swiss National Bank revealed today.
The surplus dropped to CHF 17.3 billion in the first quarter from CHF 19.3 billion recorded during the same period last year. In the fourth quarter of 2010, the surplus amounted to CHF 19.4 billion.
