Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - Yen gains in Asia as top Japan policymakers to meet on economy

Published 06/28/2016, 08:50 PM
Updated 06/28/2016, 08:52 PM
© Reuters.  Yen gains in Asia

© Reuters. Yen gains in Asia

Investing.com - The yen held stronger Wednesday in Asia as top policymakers in Japan prepared for another set of meetings on the economy in the wake of the Brexit vote in the U.K.

USD/JPY traded at 102.51. down 0.25%, while AUD/USD traded at 0.7393, up 0.11%. GBP/USD edged down 0.15% to 1.3326.

In Japan, retail sales for May fell 1.9% year-on-year, compared to a 1.6% fall seen. In Australia the HIA new home sales figures for May are due with a fall of 4.7% expected.

The pound eased after U.K. Prime Minister David Cameron told Europe’s leaders that they will have to offer the U.K. more control over immigration at the end of a fractious day where politicians across Europe clashed over the meaning and consequences of last week’s Brexit vote.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.02% to 96.17.

Overnight, the dollar pared losses against the other major currencies on Tuesday, as the release of upbeat U.S. data boosted optimism over the strength of the economy, lending support to the greenback.

The Conference Board said its index of consumer confidence rose to 98.0 this month from a reading of 92.4 in May, whose figure was revised from a previously reported 92.6. Analysts had expected the index to increase to 93.3 in June.

The report came after the third estimate of first quarter U.S. growth domestic product showed growth of 1.1%, revised up from the initial reading of a 0.8% rise. Analysts had expected growth to settle at 1.0%.

However, real consumer spending for the first three months of the year was revised down to 1.5%, from the prior reading of 1.9%. Economists had forecast an upward revision to 2.0%

Global stock markets suffered the largest two-day rout ever, as a wave of selling wiped around $3 trillion from markets.

Ratings agencies Standard & Poor’s and Fitch Ratings both downgraded their credit ratings for the U.K. on Monday and warned that further cuts are possible.

S&P, the only major ratings agency to maintain a Triple A rating for the U.K., cut its rating by two notches to AA, warning that Brexit posed a risk to the constitutional and economic integrity of the U.K.

Fitch lowered its rating from AA+ to AA, forecasting an "abrupt slowdown" in growth in the short-term.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.