The Japanese yen fell broadly on Friday and declined to a two-week lows against the U.S. dollar and euro, while the greenback traded lower against most of the major currencies due to signs of recovery in manufacturing and consumer sentiment in the U.S. The ICE Future dollar index traded down 0.29 percent at 84.577 in late New York session while Japanese yen tumbled to as low as 99.58, 132.35, 148.34 and 72.96 against the U.S. dollar, euro, sterling and Australian dollar respectively.
The demand for U.S. safe-haven currency remained low as risk appetite had been boosted worldwide by recent economic data and a note of optimism from St. Louis U.S. Federal Reserve President James Bullard who said on Friday that unemployment rates in the United States will likely crest above 9 percent, but not reach levels set in the early 1980s. In late New York session, the single currency, Australian dollar, New Zealand and Canadian dollar rose versus the U.S. dollar and were trading at around 1.3270, 0.5705, 0.7305 and 1.1850 respectively.
Meanwhile, the British pound rallied against the dollar and euro after data from U.K. showed manufacturing contracted at the slowest pace in eight months in April, climbed to 42.9 from a revised 39.5 the previous month and better than the consensus forecast of 40.0. The sterling rose to as high as 1.4935 versus the U.S. dollar and 0.8886 against the euro before stabilizing.
On the data front, orders placed with U.S. factories decreased 0.9 percent in March after a revised 0.7 percent gain in February, while the Institute for Supply Management’s factory index rose to 40.1 last month, higher than the consensus forecast of 61.9, from 36.3 in March. A separate report stated that confidence among U.S. consumers in April posted a biggest monthly gain in more than two years, surged to 65.1 from 57.3 in March and compared to economists’ median forecast of 61.9.
Data to be released in the upcoming week include Australia house price index, German retail sales and PMI manufacturing, Switzerland’s PMI, eurozone PMI manufacturing, and U.S. construction spending and pending home sales on Monday, Australia RBA rate decision, eurozone PPI, and U.S. ISM non-manufacturing index on Tuesday, U.K. nationwide consumer confidence, German PMI service, eurozone PMI service and retail sales, U.K. PMI service, and U.S. ADP employment on Wednesday, Switzerland’s CPI, U.K. BOE rate decision, eurozone ECB rate decision, and U.S. weekly jobless claims and labour cost on Thursday, and Japan BOJ minutes, German trade balance, U.K. PPI, Canada unemployment, and U.S. unemployment, average hourly earnings and non-farm payroll on Friday.