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USD Rises Against JPY and GBP After Mixed Data

The U.S. dollar rose against both the Japanese yen and the British pound on Thursday, continuing a recent upward trend against both currencies, while it dipped against the euro following some mixed economic data.

Orders for long-lasting goods made in the U.S. fell slightly in September, while initial jobless claims fell less than expected in the latest week. While both were modestly disappointing, the reports were not seen as likely to change the Federal Reserve’s timetable for raising interest rates. The U.S. central bank has said it would raise rates when it deems the economy strong enough to withstand such a move, and many expect the hike to come at its December meeting.

“The data is providing us with no strong direction. There have been disappointments, but it’s only been a teensy bit worse,” said Jane Foley, senior currency strategist at Rabobank.

The ICE U.S. dollar index DXY, +0.10% a measure of the greenback against a half-dozen rivals, rose less than 0.1% to 98.68. The index remains levels last seen in February. The WSJ Dollar index BUXX, +0.24% which looks at the dollar against a larger basket of currencies, was up 0.2% to 88.74.

Against the yen, the U.S. dollar USDJPY, +0.44% was changing hands at ¥104.84, compared with ¥104.48 late Wednesday in New York. The currency was trading near its highs of the day, and is near its highest levels since July.

Analysts said that investors have been losing their appetite for trading the currency, with the Bank of Japan’s monetary policy and the country’s economic situation offering little incentive form them to do so. BOJ Governor Haruhiko Kuroda indicated late last week that the central bank might have to push back the timetable for achieving a 2% inflation rate. However, he didn’t signal that the BOJ was ready to deliver further interest-rate cuts.

via MarketWatch [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza
Alfonso Esparza

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