2023.06.0907:17:00UTC+00Yen Falls Amid Risk Appetite

The Japanese yen weakened against other major currencies in the Asian session on Friday, as investor sentiment improved. There has been broadly positive cues from Wall Street overnight, on easing concerns over the outlook for interest rates after report showing initial jobless claims in the U.S. increased by much more than expected last week. The data added to optimism that the U.S. Fed will pause its interest rate hikes.

In economic news, data from the Bank of Japan showed that the M2 money stock in Japan was up 2.7 percent on year in May, coming in at 1,236.4 trillion yen. That was in line with expectations following the upwardly revised 2.6 percent increase in April (originally 2.5 percent). The M3 money stock was up an annual 2.1 percent for the third straight month, now at 1,591.2 trillion yen. The M1 was up 4.4 percent at 1,073.4 trillion yen, while the L money stock rose 2.4 percent to 2,112.1 trillion yen.

In the Asian trading today, the yen slid to 175.03 against the pound for the first time since 1st February 2016, from yesterday's closing value of 174.43. The yen is likely to find support around the 178.00 level.

Against the euro and the Swiss franc, the yen dropped to 10-day lows of 150.21 and 155.06 from yesterday's closing quotes of 149.76 and 154.43, respectively. If the yen extends its downtrend, it is likely to find support around 153.00 against the euro and 156.00 against the Swiss franc.

Moving away from an early 1-week high of 138.76 against the U.S. dollar, the yen edged down to 139.38. On the downside, 143.00 is seen as the next support level for the yen.

Against the Australia and the New Zealand dollars, the yen slipped to 2-day lows of 93.51 and 84.95 from yesterday's closing quotes of 93.25 and 84.67, respectively. The next downside support level for the yen is seen around 94.00 against the aussie and 87.00 against the kiwi.

The yen edged down to 104.35 against the Canadian dollar, from yesterday's closing value of 104.00. The yen may test support around the 106.00 area. Looking ahead, ECB Vice President Luis de Guindos will participate in a seminar on Capital Requirements Regulation/Capital Requirements Directive organised by the European Parliament Liaison Office in Madrid, Spain at 4:00 am ET.

Half-an-hour later, Chair of Supervisory Board of the European Central Bank, Andrea Enria, will participate in a roundtable discussion organised by Algebris Investments in Milan, Italy.

In the New York session, Canada jobs data for May and U.S. Baker Huges weekly oil rig count data are due to be released.