Yen Appreciates On Uncertainty Over Additional Stimulus Payments
The Japanese yen gained ground against its major counterparts
during the European session on Wednesday, as receding hopes of an
enhanced U.S. relief payments raised the appeal of safe-haven
Senate Majority Leader Mitch McConnell on Tuesday blocked
Democrats' attempt to immediately pass a bill that would grant
$2000 in direct payments to qualified Americans.
He said that senators will address the measure this week, but
the outcome is uncertain.
The U.S. state of Colorado reported the first case of the
coronavirus variant that was discovered in the U.K. Health
officials said that the person has no recent travel history and
they are monitoring the situation very closely.
In Japan, an earthquake of magnitude 5.1 hit Ibaraki Prefecture
at 9.35 a.m. local time.
No major damage or injuries has been reported following the
The yen climbed to 103.13 against the greenback, its biggest
level since December 18. If the yen rises further, 100.00 is seen
as its next resistance level.
The yen spiked up to 2-day highs of 80.61 versus the loonie and
126.54 versus the euro, off its early lows of 80.86 and 127.14,
respectively. The next possible resistance for the yen is seen
around 78.00 versus the loonie and 122.00 versus the euro.
The yen reversed from an early low of 117.25 versus the franc
and was trading higher at 116.63. On the upside, 112.5 is possibly
seen as its next resistance level.
The yen recovered slightly to 78.94 against the aussie and 74.11
against the kiwi, from its previous 1-1/2-year lows of 79.17 and
74.28, respectively. The yen is seen finding resistance around 77
against the aussie and 73.00 against the kiwi.
In contrast, the yen fell to a 2-day low of 140.22 against the
pound from Tuesday's close of 139.81. The yen is poised to find
support around the 142.5 region.
Data from the Nationwide Building Society showed that UK house
prices grew at the fastest pace in six years in December as the
property market remained resilient despite the pandemic.
House prices climbed 7.3 percent year-on-year in December,
following November's 6.5 percent increase. Prices were expected to
rise 6.7 percent.
Looking ahead, U.S. pending home sales, wholesale inventories
and advance goods trade balance for November will be published in
the New York session.