Currency Alerts
Japanese Yen Edges Up Against Majors
(RTTNews) -
Thursday morning in Asia, the yen rallied across the board as a weaker-than-expected Japan's final fourth quarter GDP report prompted investors toward the safe-haven Japanese currency.
Japan's gross domestic product expanded by 0.9 percent in the fourth quarter of 2009 compared to the previous three months, the Cabinet Office said today. That was weaker than expectations for a 1 percent gain compared to the 1.1 percent increase indicated in last month's preliminary report.
Annualized GDP came in at 3.8 percent, again missing forecasts for a 4.0 percent gain after the 4.6 percent reading in the preliminary report. Nominal GDP was up 0.1% on quarter compared to forecasts for an increase of 0.2% - which was the same as last month's reading.
The Japanese stock market is trading firm today with investors picking up several blue chip stocks despite economic growth falling a bit short of an earlier estimate. The benchmark Nikkei 225 index, which rose to around 10,663, is currently trading at 10,654, up 90.1 points or 0.85% over its previous close.
Among other markets in the Asia-Pacific region, Shanghai, Malaysia and South Korea are trading modestly higher. Australia, New Zealand, Singapore and Taiwan are also up in positive territory.
The yen that slumped to a 15-day low of 124.03 against the euro, 84.87 against the Swiss franc and 90.83 against the US dollar on Wednesday gained ground in early Asian trading on Thursday. By 9:10 pm ET, the Japanese yen reached as high as 123.14 against the euro, 84.29 against the franc and 90.29 against the greenback. Thereafter, the yen moved sideways and is currently quoted at 123.24 against the euro, 84.38 against the Swiss franc and 90.35 versus the greenback, compared to Wednesday's New York session closing values of 123.63, 84.64 and 90.53, respectively.
The yen that closed Wednesday's New York session at 135.61 against the pound drifted higher to 135.05 around 9:35 pm ET. On the upside, the Japanese currency may find resistance around the 134.90 level in near-term.
Looking ahead, French central government balance for January and the final non-farm payrolls data for the fourth quarter are expected in the upcoming European session. Also, the European Central Bank will release its monthly report.
Turning to the U.S., trade balance for January and the weekly jobless claims report for the weekended March 6 are expected to influence markets in the North American session.
The yen climbed to 87.98 against the Canadian dollar by 9:35 pm ET, compared to 88.39 hit late New York Wednesday. If the yen gains further, it may find resistance around the 87.80 level in near-term. Currently, the loonie-yen pair is quoted at 88.10.
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