US yields drive JPY lower
City Index June 4, 2014 2:48 PM
<p>The US dollar is trading stronger this morning following a stronger close for US yields yesterday that saw USD/JPY trade above the technical Ichimoku cloud […]</p>
The US dollar is trading stronger this morning following a stronger close for US yields yesterday that saw USD/JPY trade above the technical Ichimoku cloud resistance at 102.66. This was helped by confirmation from Tokyo that Japanese insurer Dai-Ichi Life will buy US rival Protective Life for $5.7 billion, with half this sum expected to be settled in cash. The other highlight of the Asian session has been the contrast in fortunes across the Tasman that saw AUD/NZD move above 1.10. GDP in Australia was released at 1.1%, higher than the 0.9% forecasted, even as New Zealand dairy producer Fonterra revealed that their bi-weekly milk auction price had seen a further reduction of 4.2%.
Looking at data releases today, in Europe the focus will be on the service sector PMI and updated release of Q1 GDP for the euro area and UK. In the US we will receive the ADP report and non-manufacturing ISM, both of which will allow analysts to gauge their estimates ahead of Friday’s official employment data as US trade data for April is also released. The latest thinking from the Fed in the form of the Beige Book is released this evening. The Bank of Canada will announce the outcome of its latest policy decision.
Supports 1.3580-1.3550-1.3510 | Resistance 1.3645-1.3680-1.3730
Supports 102.40-101.85-101.20 | Resistance 102.80-103.10-104.00
Supports 1.6705-1.6670-1.6600 | Resistance 1.6780-1.6820-1.6880
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