Forex News: Yen Weakened Amid GDP Data During Late Trading On Wednesday; BoJ`s Monthly Report And Fukui`s Press Meeting In Focus, Thursday, May 17, 2007 12:38:06

Thursday, May 17, 2007

Yen Weakened Amid GDP Data During Late Trading On Wednesday; BoJ`s Monthly Report And Fukui`s Press Meeting In Focus, Thursday, May 17, 2007 12:38:06

The Japanese yen fell across the board during late trading on Wednesday in New York. It was the release of the Japanese gross domestic product data for the first quarter that weakened the currency against its major counterparts. The preliminary estimates for the first quarter showed that the GDP grew only 0.6% on quarterly basis, below the market expectation of 0.7%. The annualized growth number also printed lower than analysts` expectations.

After falling amid the release, the yen moved sideways against its counterparts. Of late, amid the Bank of Japan`s rate decision, the yen saw slight weakness against the counterparts. As it was widely expected, the BoJ held its uncollateralized overnight call rate at 0.5%, in its May meeting.

As of now, the market is keenly waiting for the monthly report from the central bank of Japan and the press conference by its governor, which are expected shortly.

The Japanese currency dipped against the dollar during late hours on Wednesday in New York. It was the Japanese first quarter GDP data, which was released at 7:50 pm ET caused the weakening of the yen. Surging from 120.64, the pair fetched 120.90 at about 8:20 pm ET, and thereafter, it moved sideways between 120.77 and 120.87. Largely speaking, the pair has breached its sideways trend since early May and moved up. As of now, an upside target for the pair can be one around 121.6.

At 7:50 pm ET, when the Japanese GDP data was released, the yen fell sharply against its European counterpart. The pair thus surged to 163.56 from 163.19. The pair shed a few pips shortly, but soon entered a loose range. Of late, amid the BoJ rate decision, the euro edged up against the yen, and the pair was quoted at 163.54 at about 12:20 am ET.

Amid a weaker-than-expected Japanese data at 7:50 pm ET on Wednesday, the yen fell against the British currency. Surging from 238.64, the pair fetched as high as 239.07 by about 8:30 pm. Thereafter, the sterling moved along a wide range, bouncing around between 238.85 and 239.05 yen. Of late, the BoJ`s decision to hold the rates weakened the yen slightly, and the pair collected 239.08 at 12:10 am ET on Thursday. Largely, the pair is approaching its near term resistance level around 239.8.

Lower than expected Japanese GDP numbers for first quarter weakened the yen against the Swiss currency during late trading on Wednesday in New York. Gaining ground at 7:50 pm ET, the pair moved to 98.915 from 98.775. Thereafter, the franc moved sideways largely between 98.755 and 98.865 yen. The franc has edged up lately amid the BoJ rate decision, and the pair has now being ranged between 98.810 and 98.875. Largely, the franc was at loss against the yen on Wednesday, and despite the losses, if the pair could regain its momentum, the nearest level of resistance will be around 99.4.