The Japanese yen slipped against its major opponents in the early European session on Thursday, as European shares rose on expectations that the U.S. threats to expand tariff hikes is bluff and bluster and trade agreements will ultimately be reached.
Bloomberg reported late Wednesday that China and the U.S are showing some willingness to resume high-level trade talks, which could resolve the trade spat between the world’s biggest economies.
Traders await consumer price inflation figures later in the day. This follows a day after strong producer inflation report boosted hopes for two more hikes by the Fed this year.
Oil steadied after going into free fall on Wednesday amid trade tensions and supply concerns, as Libya resumed production and Saudi Arabia reported a big jump in output for June.
The yen dropped to near a 2-month low of 148.66 against the pound, more than 5-month low of 112.46 against the greenback, 4-month low of 112.97 against the franc and more than a 2-month low of 131.39 against the euro, from its early highs of 147.79, 111.92, 112.35 and 130.67, respectively. The yen is likely to find support around 152.00 against the pound, 133.00 against the euro and 114.00 against both the greenback and the franc.
The yen declined to 85.24 against the loonie, its lowest since June 6. On the downside, 87.00 is likely seen as the next support level for the yen.
The yen fell to 2-day lows of 76.11 against the kiwi and 83.05 against the aussie, off its previous highs of 75.55 and 82.39, respectively. The next possible support for the yen is seen around 78.00 against the kiwi and 84.00 against the aussie.
Looking ahead, Canada new housing price index for May, U.S. weekly jobless claims for the week ended July 7, consumer prices and monthly budget statement for June are scheduled for release in the New York session.
The material has been provided by InstaForex Company – www.instaforex.com