The yen suffered widespread losses against the majors in the Friday session as traders shifted back into the carry trades. US equities rallied ahead of the holidays, with both the Dow Jones Industrial Average and the Nasdaq up by around 1.5% in the New York afternoon. Prompting the gains were upbeat US economic data, which revealed continued resiliency with the American consumer. The greenback jumped to its highest level against the yen since November 7th at 114.16 while trading sideways versus the euro and sterling.
The US economic reports consisted of November consumption, core PCE, personal consumption, personal income and the University of Michigan consumer sentiment survey. The November adjusted consumption exceeded estimates for an increase to 0.6% from 0.2%, instead jumping to 1.1% while personal consumption for November edged up to a 0.5% reading from a flat reading in the previous month. The PCE index revealed lingering inflationary pressure in the economy, up 0.6% m/m from 0.3% and 3.6% compared with a 2.9% in the previous year. The core figures were slightly higher than the previous readings at 0.2% m/m and 2.2% y/y for November. The University of Michigan consumer sentiment survey fell to 75.5, less than anticipated but down from the preliminary December reading of 75.5.
Source: forexnews.com
