FRX: Dollar erases gains vs. yen amid uncertainty over global outlook
Forex Pros – The U.S. dollar erased gains against the yen on Monday amid uncertainty after G-20 leaders agreed to take different paths to cutting budget deficits, a reflection of the uneven global economic recovery.
USD/JPY erased the mornings gains to hit 89.23 during European afternoon trade, a fresh daily low; the pair subsequently consolidated at 89.26, shedding 0.006%.
The pair was likely to find support at 88.96, the low of May 20, and resistance at 89.98, last Thursday’s high.
Earlier Sunday, official data showed that retail trade in Japan rose at a slower than expected rate in May. In a report, Japan’s Ministry of Economy, Trade and Industry said retail sales rose a seasonally adjusted 2.8% in May, after an increase of 4.9% in April.
Economists had expected an increase of 4.7%.
The yen was also up against the euro, with EUR/JPY shedding 0.3% to hit 110.03.
Earlier Monday, official data showed that U.S. consumer spending rose more quickly than expected in May, climbing 0.2%, following a 0.1% increase in April.
