The Japanese yen weakened against the other major currencies in the early European session on Tuesday, as traders await a slew of U.S. reports on durable goods orders, personal income and spending, new home sales and revised GDP figures due later in the day.
The crude oil and gold also rallied along with the European shares.
The U.K.’s FTSE 100 index is currently up 0.19 percent or 12.80 points at 6,589, France’s CAC 40 index is up 0.13 percent or 5.67 points at 4,260 and Germany’s DAX is up 0.02 percent or 2.24 points at 9,868.
Economists expect the U.S. GDP to rise 4.3 percent in the July-September quarter, up from its previous estimate of 3.9 percent.
Meanwhile, trading volumes were thin and expected to remain so this week, ahead of the Christmas holiday and the New Year’s holiday.
The Japanese market remains closed in observance of the Emperor’s Birthday holiday.
In the Asian session, the yen held steady against the other major currencies.
In the early European trading, the yen fell to a 2-week low of 120.17 against the U.S. dollar and a 1-week low of 122.25 against the Swiss franc, from early highs of 119.95 and 121.88, respectively. If the yen extends its downtrend, it is likely to find support around 121.92 against the greenback and 124.00 against the Swiss franc,
Pulling away from early highs of 146.71 against the euro and 187.35 against the pound, the yen depreciated to 147.10 and 186.94, respectively. If the yen extends its downtrend, it is likely to breach yesterday’s multi-day lows of 147.11 against the euro and 187.53 against the pound.
Against the NZ and Canadian dollars, the yen slipped to 93.02 and 103.42 from early highs of 92.65 and 103.08, respectively. On the downside, 93.74 against the kiwi and 104.75 against the loonie are seen as the next support levels for the yen.
The yen retreated to 97.57 against the Australian dollar, from an early high of 97.17. Continuation of bearish trend may lead the yen to a support around the 98.50 mark.
Looking ahead, Canada GDP for October and U.S. durable goods orders for November, U.S. final third-quarter GDP data, house price index for October and personal income and spending data for November are due to be released in the New York session.
At 9:55 am ET, U.S. Reuters/University of Michigan’s final consumer sentiment index for December is due to be released.
The material has been provided by InstaForex Company – www.instaforex.com