Dollar And Yen Rebounds Against Majors

Dollar And Yen Rebounds Against Majors


The U.S. dollar and the Japanese yen that extended their Friday's decline against other major currencies in early Asian deals on Monday reversed direction shortly and resumed the uptrend in the subsequent hours despite lack of fresh trading cues.
A stronger-than-expected U.S. jobs data released Friday fueled risk appetite, pushing down dollar and yen to fresh multi-week lows.
According to a report released by the Labor Department on Friday, non-farm payroll employment increased by 163,000 jobs in July following a downwardly revised increase of 64,000 jobs in June.
Economists had expected employment to increase by about 100,000 jobs compared to the addition of 80,000 jobs originally reported for the previous month.
Despite the job growth, the unemployment rate edged up to 8.3 percent in July from 8.2 percent in June. The increase surprised economists, who had expected the unemployment rate to come in unchanged.
However, the dollar and yen rebounded today ahead of the unfolding week's economic news and events.
The Reserve Bank of Australia is due to announce its interest rate decision on Tuesday, with analysts expecting the bank to retain its interest rate at 3.5 percent.
Investors are also focusing on the Bank of Japan's two-day policy meeting that starts Wednesday. Many market participants believe the Bank of Japan will refrain from announcing new measures after the U.S. Federal Reserve and the European Central Bank failed to make significant moves last week.
The yen is currently trading at 80.60 against the franc, 122.22 against the pound and 96.80 against the euro. If the yen gains further, it will target 96.4 against the euro, 122.0 against the pound and 80.0 against the franc.
Against the U.S. dollar, the yen is now worth 78.35 with 78.1 seen as the next upside target level.
The yen is presently trading at 78.24 against the Canadian dollar and the next upside target level for the yen is seen at 78.0.
Meanwhile, the yen is worth 64.04 against the NZ dollar and 82.65 against the Australian dollar. If the yen rallies further, it will target 63.6 against the kiwi and 82.4 against the aussie.
Elsewhere, the U.S. dollar also bounced back, with the currency now trading at 1.2360 per euro, 1.5600 against the pound and 0.9723 against the franc. On the upside, the dollar is likely to target 1.230 against the euro, 0.975 against the franc and 1.555 against the pound.
In economic news from U.K., data from Lloyds Banking Group's Halifax division showed that the house price index decreased 0.6 percent on a monthly basis in July, following two consecutive increases in May and June.
In the three months ended July, house prices decreased 0.6 percent from the corresponding period a year earlier, slightly slower than the 0.5 percent decrease seen in the previous three-month period.
Against the New Zealand dollar, the U.S. dollar is now trading as high as 0.8168 with 0.814 seen as the near term resistance level.
The U.S. dollar also followed a similar trend against the Australian dollar, with the pair currently worth 1.0545. The next upside target level for the greenback is seen at 1.050.
Looking ahead, Eurozone Sentix investor confidence for August is slated for release at 4:30 am ET.
There are no major economic reports due from the U.S. today.




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