Forex - USD/JPY tumbles after weak U.S. growth, jobs data
Investing.com
Published May 26, 2011 08:57AM ET
USD/JPY hit 81.16 during European afternoon trade, the pair’s lowest since May 18; the pair subsequently consolidated at 81.31, tumbling 0.82%.
The pair was likely to find support at 80.72, the low of May 17 and short-term resistance at 82.21, the high of May 24 and a one-month high.
The Commerce Department said its second estimate of gross domestic product growth was unrevised at annual rate of 1.8% in the three months to March, below economists' expectations for a 2.1% increase.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, expanded 2.2% in the first three months of this year instead of the expected 2.7% rate.
Separately, the Labor Department said the number of individuals filing for initial jobless benefits in the week ending May 21 unexpectedly rose by 10K to a seasonally adjusted 424K, from an upwardly revised 414K in the preceding week. Analysts had expected initial jobless claims to fall to 400K.
The dollar was also lower against the Swiss franc, with USD/CHF shedding 0.60% to hit 0.8670.
Earlier in the week, Swiss National Bank Vice Chairman Thomas Jordan said he was "very worried" about the rise in the Swiss franc but said interest rates can remain low for a relatively long period if inflation risks are benign.
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Written By: Investing.com
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