Forex News

Yen fell against the comments of the head of the Bank of Japan

The Japanese yen fell against its main competitors in the European session on Thursday after the Governor of the Bank of Japan Haruhiko Kuroda offered an optimistic view of the Japanese economy and continued to maintain a strategy of low rates to achieve the inflation target.

Japan’s economy is expected will continue to grow moderately, Kuroda said at a meeting with managers of regional branches.

According to him, short-term and long-term interest rates will remain at their current "very low" levels x. The bank manager added that the central bank would only make the necessary policy adjustments to maintain the economy’s momentum to reach the target.

European stocks were mixed, as EU leaders decided to spend more time reviewing the divorce deal at the Brussels summit. [19659002] Investors were focused on negotiations for Brexit, as Prime Minister Theresa May assured that the UK would work intensively over the next days and weeks to conclude

Ministry of Finance data showed that Japan had a trade surplus of 139.6 billion yen in September.

This exceeded expectations of a deficit of 45.1 billion yen after a deficit of 444.6 billion yen in August.

Exports fell by 1.2 percent compared with the previous year, while imports rose by 7.0 percent.

The yen showed mixed trade against its main competitors in the Asian session. While it fell against the dollar, it climbed against the euro, the franc and the pound.

The yen retreated to 147.75 against the pound and 113.46 against the franc from early highs of 147.09 and 112.93, respectively. Areas 150.00 and 115.00 are considered as the next support levels for the yen against the pound and the franc, respectively.

Rising to a more than 5-week high of 129.12 against the euro at 2:15 am Eastern time, the yen changed direction and dropped to 129.73. The yen is likely to find support in the area of ​​131.00.

Data from Destatis showed that wholesale prices in Germany rose at a slower pace in September.

Wholesale price inflation slowed to 3.5 percent from 3.8 percent in August .

The yen fell to an 8-day low of 80.45 against the Australian dollar after rising to 80.00 at 19:00 ET. The yen will find support at 82.00.

The yen has changed from an early 2-day high of 73.56 against the New Zealand dollar, falling to 73.99. If the yen advances further, 82.00 is likely to be viewed as the next support level.

On the other hand, the yen stood at 112.46 against the US dollar after it recovered from an 8-day minimum of 112.73 , recorded at 20:45 EST. At yesterday's close, the pair was trading at 112.64.

The yen reached a 2-day high of 86.14 against the Canadian dollar, from yesterday's close of 86.50. The next possible resistance is in the 85.00 area.

Weekly applications for unemployment benefits in the United States for the week ending October 6 and the leading index for September will be released at the New York session.

At 12:15 am Eastern time, the governor of the Federal Reserve, Randall Quarles, will speak on economic prospects.