Shutterstock photo
Markets

Forex - USD/JPY extends gains after U.S. consumer inflation data

Shutterstock photo

Shutterstock photo

Forex Pros - The U.S. dollar extended gains against the yen on Wednesday, rising to a nine-day high after official data showed that U.S. core inflation posted its largest monthly gain in nearly three years last month.

USD/JPY hit 81.06 during European afternoon trade, the pair's highest since Monday; the pair subsequently consolidated at 80.87, advancing 0.48%.

The pair was likely to find support at 79.83, the low of June 9 and resistance at 81.00, the high of June 3.

The U.S. Labor Department said consumer prices rose a seasonally adjusted 0.2% in May, after a 0.4% increase the previous month. Core inflation, which excludes volatile energy and food costs, rose by a monthly 0.3% in May, the biggest jump since July 2008, after rising by 0.2% in April.

Economists had forecast a 0.1% rise in overall prices, and a 0.2% gain for core inflation.

Year-on-year, consumer prices rose by 3.6% last month. Excluding energy and food costs, inflation was 1.5% higher over a 12-month span, still within the Federal Reserve's targeted range.

The report said the rise in underlying inflation was mainly driven by price increases for clothing, housing, new vehicles and recreation.

The U.S. dollar was also higher against the Swiss franc, with USD/CHF surging 0.74% to hit 0.8516.

Elsewhere, the New York Federal Reserve said its index of manufacturing conditions fell significantly more-than-expected in June, falling into negative territory for the first time since November.

The bank's index of general business conditions tumbled to -7.8 in June from 11.9 in May. Analysts had expected the index to climb to 13.0 in June.

Forex News

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx

Latest Markets Videos