Monday saw the Japanese yen slide for the third consecutive trading session against the world's reserve currency in the aftermath of strong economic data released by the U.S. Labor Department regarding its job creation last month, Bloomberg reports.
Demand for the yen was slipping as the monetary unit of the Pacific Rim nation also dropped against the common currency of the European Union. The euro was propped up by data about regional industry for services and manufacturing being stronger than projected in April.
"If risk appetite on the market remains unchanged the yen will remain under pressure," senior currency strategist Antje Praefcke with Commerzbank AG in Frankfurt told the news source on Monday. The Japanese yen "has approached the 100 mark again. This was caused by the U.S. labor market data for April, which surprised on the upside."
After creating 165,000 new jobs last month, the U.S. unemployment rate fell to 7.5 percent.
The Japanese yen lost 1.8 percent of its value on Friday against the Australian dollar but the South Pacific currency was cramped on Monday by economic data from March noting retail sales unexpectedly fell, according to Reuters.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
