The Japanese yen fell against the dollar and other major currencies, amid increasing risk appetite pushing USD/JPY higher. After a substantial rise witnessed in the U.S. housing data yesterday and good manufacturing figures from Europe optimism returned to the market.
On the contrary, the Japanese economy released the merchandise trade balance for March, where the surplus narrowed to 196.5 billion yen compared the revised previous surplus of 653.3 billion yen. The data was pessimistic enough to drive the Japanese currency to the downside against its major counterparts.
Asian stock markets rallied on Wednesday following the footsteps of Wall Street, where the strong housing market data from U.S. economy improved risk appetite and increased demand for higher-yielding assets. Good earnings were also a boost for the market and eased jitters that started the week.
Japan will start Thursday at 5:00 GMT by issuing the final reading for the coincident index during February from the previous reading of 106.3, while the final reading for the leading index is awaited from the previous of 104.2.
At 12:30 GMT, U.S economy will release the weekly initial claims numbers, where the number of people filing for first-time claims for state unemployment benefits is expected to drop to 393 thousand from 412 thousand.
The U.S. leading indicator for March will be issued at 14:00 GMT and expected to slow to 0.3% from 0.8% previous.
Finally, U.S. economy will release Philadelphia Fed business outlook for April also at 14:00 GMT, which expected with a strong drop to 36.0 from 43.4 which might affect the positive sentiment in the market and power the yen in that case for some gains.
Originally posted here
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