Yen Off Recent Highs Early New York Tuesday

Yen Off Recent Highs Early New York Tuesday

Tuesday, February 06, 2007 6:48:15 AM - The Japanese yen showed weakness across the board early Tuesday in New York. This came after the December leading indicators which improved in line with the market expectations.

Yen was higher during much of Asian session of Tuesday amid concerns over the possibility of Japanese currency’s broad weakness being discussed in the G7 forum. But the New York Tuesday’s early deals witnessed yen giving back the recent gains to the majors.

BRC retail sales for January was the fundamental came after the Japanese leading indicator data early today. The U.K retail sales rose 3.1% on year on like-for-like basis in January, the British Retail Consortium said Tuesday. The three-month trend rate of growth improved to 2.1% from 1.9% recorded prior month. Following the data, yen lost ground against the sterling. GBPJPY grew from 235.63 to 236.54 within about a couple hours since 1:45 am ET.

The Japanese data was released at 12:00 am in New York. Japanese leading index climbed to 25.0% in December when the November reading was 18.2%. This was in line with economists’ expectations. Meanwhile, the coincident index stood at 61.1%, lower than 65.0% recorded for November. This also matched the consensus. And, the lagging index dropped to 50.0% from 60.0% registered in November.

Losses against the European currency made EURJPY hit 155.97 shortly before the euro-zone data, growing from 155.37 which was the quote at 1:50 am ET. Following a weaker-than-expected euro-zone retail sales data at 5:00 am, yen made slight advances against its European counterpart but reversing the losses, pair entered a sideways trend soon after and pair continued steady amid the German factory orders for December that followed.

To the greenback, yen’s weakness made the pair rally from 120.24 to 120.54 by about 3:30 am and after that, pair entered a sideways trend which was loosely bound. During the session, the growth recorded by CHFJPY was a change from 96.25 to 96.64.

When no key economic data is expected from the US economy for the day, Paulson’s testimony on Budget before the House and the Senate would be major attractions for the traders. Speeches by Fed’s Moskow and Yellen scheduled for the day also will be focused by the traders, it is widely expected.

Against the greenback, yen weakened early Tuesday. Pair rallied from 120.24 to 120.5 within the time span between 12:50 am 3:30 am ET. After that, USD/JPY was largely sideways until about 5:00 am and following that, dropped off. At 6:35 am ET, USD/JPY fetched 120.22.

After holding steady initially, EURJPY rallied early trading New York Tuesday. Growing from 155.37 from 1:50 am ET pair collected 155.97 shortly before the Euro-zone retail sales data. Following a weaker-than-expected data, yen gained upper hand over the common currency after 5:00 am. By about 6:35 am ET, pair declined to 155.55 as result of that.

To the British currency, JPY showed weakness early trading Tuesday. Starting from 235.63 at 1:50 am, pair collected 236.89 by about 5:00 am ET. Sterling then shed a few pips and has been moving sideways, of late. At 6:35 am ET, GBP/JPY was equal to 236.49.

Yen weakened heavily against the Swiss franc early trading Tuesday in New York. At about 2:00 am from 96.25, pair rallied and fetched 96.70 within three hours. After that, however, pair dropped a few of these gains but has soon consolidated to a range. As of 6:35 am ET, CHF/JPY collected 96.54.