USD/JPY resumes rebound from two-week trough
USD/JPY tilted higher in Asian trade off September 23 lows following earlier data from Japan and a speech by BoJ Governor Haruhiko Kuroda, and ahead of US data today.
As of 06:50 GMT, USD/JPY rose 0.10% to 105.74, with an intraday high at 105.76.
Earlier Japanese data showed the leading index rose to 88.8 in August from 86.7 in July.
From the US, Federal Reserve Bank of New York President John Williams will speak about flexible average inflation targeting at an online event hosted by the Hoover Economic Policy Working Group.
Federal Reserve Bank of Minneapolis President Neel Kashkari is due to speak about racism and the economy at a virtual event series.
The Fed will release minutes of its September meeting, at which policymakers maintained rates at near zero, while releasing three-year estimates for inflation, unemployment, ans growth.
The US dollar continued to rally against most major currencies on Friday, which put weighed down on precious metals and attracted safe-haven demand. Data showed that the US durable goods orders index rose 0.4% in August, beating analysts' forecasts of 1.1%. The core reading of the durable goods orders index (excluding energy and food prices) rose 0.4% in August, also lower than forecasts of 1%. Several FOMC members issued conflicting statements, as some stated that the US economic crisis is worse than it appears, and others expressed that the economy would recover from the pandemic soon. Bearing in mind that Fed Chairman Jerome Powell stressed in his testimony before the US Congress that the ball is now in Congress' court to support US companies most hit by the coronavirus. The dollar index rose against a basket of currencies by 0.3% to 94.6 points as of 19:42 GMT, after it hit a high of 94.6 and a low of 94.1.
The British Pound rose against the US dollar on Thursday, despite Bank of England President Andrew Bailey's pessimistic remarks. Bailey said "it's reasonable to think the fast pattern of the recovery over the summer is not going to continue in the same way," according to Reuters. Bailey also said that the Brexit talks should result in a trade deal between the UK and the EU, as such an agreement is in the interest of both sides. This came as post-Brexit negotiations between London and Brussels appear to appear to hit a brick wall, amid fears of a no-deal Brexit scenario. Bailey stated that he strongly welcomes the new job plan announced by the UK's Finance Minister Rishi Sunak to support the labor market and jobs in the UK. As of 20:35 GMT, GBP/USD rose 0.2% to 1.2748, after hitting a day high of 1.2778 and a low of 1.2691.
USD/JPY tilted higher in Asian trade off October 2 lows amid a lack of data from Japan and ahead of US data and Fed speeches today. As of 06:50 GMT, USD/JPY rose 0.09% to 105.53, with the highest since October 13 at 105.62. From the US, building permits are expected up to 1.52 million units in September, while Housing Starts are expected up to 1.45 million units. New York Fed Governor John Williams will talk today in a series of web seminars, with similar speeches other Fed officials on financial stability. Democrats and Republicans remain in a tug of war over Covid relief, with the World Health Organization reporting 39.95 million global coronavirus cases so far, with the death toll standing at 1.11 million.