Yen Falls As European Shares Gain
05 Juni 2024 - 9:26AM
RTTF2
The Japanese yen weakened against other major currencies in the
European session on Wednesday, as investors looked ahead to
Thursday's ECB meeting and the release of U.S. labor market data on
Friday for directional cues.
The European Central Bank is expected to ease borrowing costs by
25 basis points from the present record levels of 4 percent.
In economic releases, the final reading of the HCOB eurozone
composite PMI stood at 52.2 in May, down marginally from the
preliminary reading of 52.3 but up from 51.7 in April.
That was the highest rate of growth since May 2023 as inflation
continued to cool.
Data from the Ministry of Health, Labor, and Welfare showed that
Japan's total labor cash earnings continued to increase in April,
and at the quickest pace in ten months. Total earnings rose 2.1
percent year-over-year in April, faster than the revised 1.0
percent growth in March. The safe-haven yen traded lower against
its major rivals in the Asian session today.
In the European trading now, the yen declined to a record low of
175.14 against the Swiss franc, from an early high of 173.79.
The yen fell to 170.00 against the euro and 199.64 against the
pound, from early highs of 168.41 and 197.68, respectively. If the
yen extends its downtrend, it is likely to find support around
173.00 against the euro and 201.00 against the pound.
Against the U.S., Australia, the New Zealand and the Canadian
dollars, the yen edged down to 156.30, 104.01, 96.75 and 114.29
from early highs of 154.78, 102.91, 95.59 and 113.14, respectively.
The yen is likely to find support around 162.00 against the
greenback, 106.00 against the aussie, 98.00 against the kiwi and
117.00 against the loonie.
Looking ahead, U.S. and Canada services PMI reports for May,
U.S. ADP employment data and U.S. EIA weekly crude oil data are
slated for release in the New York session.
At 9:45 am ET, the Bank of Canada will deliver its latest
interest rate decision. The central bank is widely expected to cut
its key interest rate to 4.75% from 5%.
Later, a post-press conference by Governor Tiff Macklem and
senior deputy governor Carolyn Rogers is scheduled at 10:30 am
ET.
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