Investing.com - The dollar rose against the yen on Monday as
investors continued to applaud Friday's better-than-expected
February jobs report in the U.S., while slumping Chinese trade
figures sparked safe-haven demand for the greenback.
In U.S. trading, USD/JPY was up 0.03% and trading at 103.29, up
from a session low of 102.94 and off a high of 103.41.
The pair was expected to test support at 101.20, the low from
March 3, and resistance at 103.76, Friday's high.
The Bureau of Labor Statistics reported Friday that the U.S.
economy added 175,000 jobs in February, beating expectations for a
January's figure was revised up to 129,000 from 113,000.
The data extended the dollar's gains into Monday, as the Federal
Reserve has said it will pay close attention to data when deciding
on how quickly it will dismantle its monthly bond-buying
Fed bond purchases, currently set at $65 billion a month, weaken
the dollar by suppressing interest rates to spur recovery by
encouraging investing and hiring.
Weak Chinese trade data supported the greenback as well by
bolstering its appeal as a safe-haven asset class.
Data released over the weekend showed that Chinese exports fell
18.1% on-year in February, defying expectations for a 6.8%
increase, following a rise of 10.6% in January.
A separate report showed that the annual rate of inflation in
China slowed to 2.0% in February, from 2.5% in January.
The numbers confirmed market concerns that emerging markets are
Meanwhile in Japan, data revealed the economy grew 0.2% in the
final three months of 2013, missing market calls for a 0.3%
On a year-over-year basis, the economy expanded by 0.7%, missing
expectations for a 1.0% reading.
The yen, meanwhile, was down against the euro and up against the
pound, with EUR/JPY up 0.02% at 143.32, and GBP/JPY trading down
0.46% at 171.81.
The euro saw some support on market views that the European
Central Bank will hold off on stimulating the economy further.
Last week, the ECB left its benchmark interest rate unchanged at
0.5%, as recent data indicated moderate economic recovery was
taking place in the euro zone.
Elsewhere in Europe, investor confidence in the euro zone for
March rose to its highest level since April 2011, easing concerns
over the outlook for the region's economy, data showed on
Market research group Sentix reported earlier that its index of
investor confidence improved to 13.9 this month from a reading of
13.3 in February. Analysts were expecting the index to increase to
14.0 in March.
On the index, a level above 0.0 indicates optimism, below
Separately, French industrial output fell unexpectedly in
January, official data showed on Monday.
In a report, INSEE said that French Industrial Production fell
to -0.2% in January from -0.6% in the preceding month.
Analysts had expected French Industrial Production to rise 0.2%
On Tuesday, the Bank of Japan is to announce its benchmark
interest rate and publish its monetary policy statement, which
outlines economic conditions and the factors affecting the bank's
decision. The announcement is to be followed by a press
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