USD/JPY shows some signs of life, climbs to 112.10
- US Dollar Index sits above 97.
- Fed's Beige Book says economy expanded at a slight-to-moderate pace in March and early April.
- Wall Street trades mixed following the positive start to the day.
The USD/JPY pair was virtually dead near the 112 mark for the majority of the day before posting small gains in the last hour. As of writing, the pair was up 0.08% on the day at 112.08.
Earlier in the NA session, the data published by the U.S. Census Bureau showed that the trade deficit in the U.S. narrowed to $49.4 billion to better the analysts' estimate of $53.5 billion. Although the greenback failed to capitalize on that positive data, the upbeat tone in the Fed's Beige Book later in the session provided a modest boost to the currency. As of writing, the US Dollar Index was unchanged on the day at 97.03.
In its Beige Book, the Fed noted that the economy expanded at a slight-to-moderate pace in March and early April. "Most Fed districts said growth continued at a similar pace as in previous report, but a few reported some strengthening," the Fed noted. "Reports on manufacturing activity were favorable, although contacts in many Fed districts noted trade-related uncertainty."
On the other hand, following a positive start to the day, major equity indexes in the U.S. turned south with the exception of the Nasdaq Composite and helped the JPY stay resilient against the buck. However, the Dow Jones Industrial Average just recently turned green on the day and the S&P 500 erased the large part of its daily losses, hinting at a slightly improved market sentiment.
In the early Asian session, Nikkei Manufacturing PMI from Japan will be looked upon for fresh impetus.
Technical levels to consider
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
