Thursday US Data Wrap: USD/JPY Rallies on Improved Claims, Home Sales
THE TAKEAWAY: Batch of secondary US economic data points to improved underlying fundamentals > supportive of QE3 taper speculation > USDJPY BULLISH
There were several releases on the economic calendar today for the US Dollar, and while most of the data were in line with market forecasts, a few strong outlier prints has the US Dollar up across the board once more. The important data fueling the rally:
- Personal Income (MAY): +0.5% vs +0.2% expected, from +0.1% (revised higher from 0.0%) (m/m)
- Initial Jobless Claims (JUN 22): 346K vs 345K expected, from 355K (revised higher from 354K)
- Pending Home Sales (MAY): +6.7% vs +1.0% expected, from -0.5% (revised lower from +0.3%) (m/m)
- Pending Home Sales (MAY): +12.5% vs +8.3% expected, from +13.9% (revised lower from +12.9%) (y/y)
USDJPY 1-minute Chart: June 27, 2013
Charts Created using Marketscope – prepared by Christopher Vecchio
Following the 08:30 EDT/12:30 GMT data, the USDJPY briefly dipped from ¥98.18 to as low as 97.82, before roaring back to its prerelease level within 20-minutes. The pair continued higher until 10:00 EDT/14:00 GMT, when the pair rallied from 98.26 to as high as 98.46, at the time this report was written. Accordingly, the USDJPY has taken back nearly all of its losses since Monday morning, when the pair topped at 98.70.
--- Written by Christopher Vecchio, Currency Analyst
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