Investing.com The yen gained in Asia on Monday after mixed data on industrial production and producer prices (PPI) as markets stood caution on efforts by Prime Minister Theresa May to secure support for a coalition government and awaited key central bank meetings this week.
USD/JPY fell 0.08% 10 110.25 despite weaker machinery orders data than expected. Japan reported core machinery orders for April slipped 3.1% month-on-month, well below the 0.5% gain seen and up 2.7% on year, also less than the 7.3% jumped expected. PPI in Japan came in flat on month in May and up 2.1% on year, below the 2.2% gain seen.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased 0.07% to 97.17. AUD/USD traded at 0.7535, up 0.07%, while GBP/USD traded at 1.2746, down 0.01%.
The big meeting on the horizon is Wednesday’s Federal Reserve policy meeting, where the central bank is widely expected to deliver its second rate hike so far this year, but the Bank of Japan, and the Bank of England will also review policy this week.
The dollar rose against a basket of the other major currencies on Friday as the pound remained sharply lower after British Prime Minister Theresa May’s Conservative Party unexpectedly lost its majority in parliament in a national election.
The index plumbed seven-month lows earlier in the week amid caution ahead of former FBI Director James Comey's testimony and the UK election.
On Thursday, Comey accused President Donald Trump of firing him in a bid to undermine a probe into Russia’s alleged involvement in the U.S. presidential election, but did not say whether he thought the president attempted to obstruct justice.
The shock UK election result added to political risks surrounding the upcoming Brexit negotiations, due to start on June 19. Sterling found some support from reports that May was seeking a deal to form a government with support from Northern Ireland’s Democratic Unionist Party, known as the DUP.
The euro was a touch lower against the dollar, with EUR/USD slipping 0.13% to 1.1194 a day after the European Central Bank cut its inflation forecasts, but dropped its guidance that interest rates may be cut again.
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