Yen Falls On U.S. Stimulus Expectations
The Japanese yen slipped against its major counterparts in the
Asian session on Thursday, as the Democratic victory in runoff
elections in Georgia underpinned sentiment.
Democratic candidates Raphael Warnock and Jon Ossoff defeated
Republican challengers Kelly Loeffler and David Perdue,
respectively in the state of Georgia.
With the victory, the Democrats will have 50 seats in the
Senate, the upper house of Congress. And a tie-breaking vote from
Vice President-elect Harris would give them control of the
This gives President-elect Joe Biden a greater scope of pursuing
fiscal stimulus being sworn in on January 20.
The yen dropped to 103.26 against the greenback and 117.44
versus the franc, off its early highs of 102.95 and 117.14,
respectively. If the yen slides further, 106.5 and 120.5 are
possibly seen as its next support levels against the greenback and
the franc, respectively.
After rising to 126.88 against the euro and 81.18 against the
loonie in previous deals, the yen edged down to 127.23 and 81.46,
respectively. The yen is seen finding support around 129.00 versus
the euro and 82.5 versus the loonie.
In contrast, the yen was trading at 80.33 against the aussie and
75.12 against the kiwi, up from its early low of 75.29 and near a
2-year low of 80.55, respectively. The yen is poised to test
resistance around 77.00 against the aussie and 72.00 against the
The yen reversed from an early low of 140.55 against the pound,
with the pair trading at 140.26. The currency may test resistance
around the 138.00 region.
Looking ahead, at 2.00 am ET, German factory orders for November
At 2.30 am ET, the Federal Statistical Office is set to publish
Swiss retail sales for November.
Eurozone retail sales for November and economic confidence index
and consumer price inflation for December, as well as German and
U.K. construction PMIs for December are set for release in the
U.S. and Canadian trade data for November, Canada Ivey PMI for
December, U.S. weekly jobless claims for the week ended January 2
and ISM non-manufacturing PMI for December will be released in the
New York session.