© Reuters. Yen weaker in Asia
Investing.com — The dollar held strength in Asia on Friday, as the yen was hit by the weaker-than-expected data and the prices of the euro and the pound fell to spitz and Leakage concerns and
USD/JPY changed hands at 114.13, up 0.14%, while AUD/USD 0.7659 traded, own 0.01%. EUR/USD slipped 0.13% to 1.1637 and GBP/USD lost 0.24% to 1.3129.
In Japan, national core CPI in September was 0.7%, slightly weaker than the 0.8% gain seen a year-on-year and national CPIedged 0.7% as expected.
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted up 1.09% to 94.55.
Overnight, the dollar rose against a basket of major currencies on Thursday, benefit from a sharp fall in the euro after the European Central Bank President Mario Draghi hinted that the Central Bank’s bond-buying program could still be expanded, in addition, in September 2018.
The European Central Bank announced their intention to rein in monetary stimulus, reducing its monthly purchases of bonds up to€ 30 billion, while the expansion of its bond-buying program for a period of nine months until September 2018.
The reduction in the volume of bond purchases was widely expected, but investors were surprised by some quiet comments from ECB President Mario Draghi.
Draghi that the Central Bank’s bond-buying program is «open-ended», dashing investor expectations that the beginning of the quantitative would attract to consider the customs of the Central Bank closer to an end-date for its massive bond-buying program.
“The decision today is for an open-ended program … it will not stop suddenly. The large majority of the ECB governing Council expressed a preference for keeping it open,» Draghi said at the press conference. The jump in the euro helped the dollar rise to a more-than-three-month high amid the release of mixed economic data.
The pound has also engines said to be weaker than the British government on Thursday, his key piece of Brexit laws would be discussed in Parliament on Nov. 14 and 15, the next stage in what is expected to be a tortuous legislative process, the test Prime Minister Theresa May authority.
Weakness in residential construction continued, while the National Association of Realtors’ pending home sales was flat in September, missing expectation of 0.2% rise.
The U.S. labor Department reported Thursday that initial claims increased aid to the unemployed by 10,000 to a seasonally adjusted 233,000 for the week ended Oct. 21, beating the forecasts of a 12,000 increase.