The US Dollar skidded to a 2-week trough versus the Japanese Yen after the release of disappointing economic data put the greenback under pressure and boosted demand for safe haven currencies. The latest data showed that pending home sales (on a month-over-month basis) fell in November to a 1-year low, with the reading at -2.5 against expectations of a fall to 0.5 from 1.0 in October. If today’s release of new unemployment claims fails to meet expectations that could also weigh on the Dollar.
As reported at 10:51 am (GMT) in London, the USD/JPY was trading at 116.394 Yen, down 0.53%; the pair has ranged from a session low of 116.1900 Yen to a peak of 117.25 Yen. The GBP/USD was higher at $1.2663, up 0.34% for the Pound. The EUR/USD was up at $1.0471, a gain of 0.52%.
Dollar Could Still Gain Some Ground
Currency strategists say that it looks like any dollar gains against the Yen are likely to be limited. However, against the Euro there is still room for appreciation, especially given the widening gaps between US Treasury bonds and German Bunds; the current spread for 10-year notes it at its widest in 26 years. The Pound Sterling, though edging higher currently, is expected by analysts to continue to move lower; thus far, the Pound has lost 17% of its value versus the Dollar.