The Japanese yen weakened against most major currencies in the European session on Friday amid risk appetite, as European shares rose after optimistic corporate earnings results. The German business confidence index, that improved for the sixth consecutive month in April, also supported shares.
German business confidence improved for the sixth consecutive month in April, reports said citing survey results from Munich-based Ifo Institute. The business confidence index rose more-than-expected to 108.6 in April from 107.9 in March. It was forecast to rise to 108.4.
Investors await the Eurogroup finance ministers meeting in Latvia’s capital Riga to discuss the situation in Greece.
The U.K.’s FTSE 100 index is currently up 0.56 percent or 39.26 points at 7,092, France’s CAC 40 index is up 0.77 percent or 39.64 points at 5,218 and Germany’s DAX is up 0.69 percent or 25.50 points at 3,741.
German Chancellor Angela Merkel has said that she had a “constructive” meeting with Greek Prime Minister Alexis Tsipras and also said that she would do everything to prevent a default of Greece.
In other economic news, data from the Bank of Japan showed that an index measuring producer prices in Japan were up 3.2 percent on year in March, standing at 103.0. That was just shy of forecasts for 3.3 percent, which would have been unchanged from the February reading.
For the first quarter of 2015, producer prices were up 3.3 percent on year, slowing from 3.5 percent in the previous three months. They were also down 0.1 percent on quarter after adding 0.2 percent in the three months prior.
Data from the Ministry of Economy, Trade and Industry showed that Japan’s all industry activity increased unexpectedly in February. The all industry activity index climbed 0.1 percent month-on-month in February, in contrast to economists’ expectations for a 1.0 percent decline.
On a yearly basis, the all industry activity index dropped at a slower pace of 1.2 percent in February, following a 1.7 percent fall in January. It was the eleventh successive monthly decrease.
In the Asian trading, the yen held steady against its major rivals.
In the European trading today, the yen fell to more than a 5-week low of 180.96 against the pound and more than a 2-week low of 130.10 against the euro, from early highs of 179.64 and 128.94, respectively. If the yen extends its downtrend, it is likely to find support around 184.50 against the pound and 132.50 against the euro.
Against the Swiss franc, the yen depreciated to a 2-day low of 125.52 from an early high of 124.83. On the downside, 127.00 is seen as the next support level for the yen.
Pulling away from an early high of 98.21 against the Canadian dollar, the yen edged down to 98.54. The yen is likely to find support around the 101.50 area.
Looking ahead, U.S. durable goods orders data for March is set to be published in the New York session.
At 10:30 am ET, Bank of Canada Governor Stephen Poloz will participate in a panel discussion at the Export-Import Bank of the United States in Washington DC.
The material has been provided by InstaForex Company – www.instaforex.com