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Forex - Japanese yen gains in early Asia, Kuroda slated to speak

Published 09/11/2014, 07:06 PM
Updated 09/11/2014, 07:08 PM
Japanese yen stronger in Asia

Japanese yen stronger in Asia

Investing.com - The Japanese yen gained slightly in Asia early Friday with no major data ahead, but comments expected from the central bank chief.

BOJ Governor Haruhiko Kuroda will speak at the National Graduate Institute for Policy Studies graduation ceremony from 1505 to 1525 Tokyo time (0605 to 0625 GMT).

USD/JPY traded at 107.06, down 0.04%, while AUD/USD traded at 0.9104, up 0.05%.

Overnight, the dollar traded mixed to higher against most major currencies despite a lackluster report on weekly U.S. jobless claims, as investors viewed the report as unlikely to sway the Federal Reserve from moving towards tighter monetary policy.

The U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending Sept. 6 increased by 11,000 to a 10-week high of 315,000 from the previous week’s revised total of 304,000.

Analysts had expected jobless claims to fall by 4,000 to 300,000 last week, and the figure gave investors room to sell the greenback for profits.

The dollar still remained strong against the euro and most other currencies, as the labor market has shown consistent improvement this year.

Furthermore, the labor market often appears weaker than it really is in August due to seasonal factors, while factory, service-sector, gross domestic product and other data all point to a U.S. recovery that is gaining steam, with hiccups here and there.

The Federal Reserve will conclude a two-day policy meeting next week, and markets expect the monetary authority to cut its monthly bond-buying program by $10 billion to $15 billion, with some hoping for language hinting at when interest rates may rise.

Geopolitical issues dampened the greenback somewhat.

U.S. President Barack Obama said earlier Washington will join the European Union and slap fresh sanctions on Russia, accusing it of meddling in neighbor Ukraine's internal conflict.

Sanctions will target Russia’s financial, energy, and defense sectors and will take effect on Friday, when further details will be released.

The move rekindled fears that the conflict may drag on U.S. recovery.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.04% at 84.44.

On Friday, more heavy-hitting data will publish.

The U.S. is to release data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.

The U.S. is also to release what will be closely watched preliminary data on consumer sentiment.

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