JPY Slumps

he greenback was little change in the Thursday session, edging y higher against the euro toward the 1.35-level while advancing versus the sterling. The yen was the loser on the session amid sharp gains in the US equity bourses, losing ground across the board. The Dow Jones added onto recent sessions’ gains, up 2.25% while the Nasdaq surged by 3.8%.

The US economy contracted by less than expected in Q4, albeit worse than the initial reading. The report revealed Q4 GDP contracted by 6.3% better than consensus estimates for a 6.5% decline versus the previous estimate of a 6.2% decline.

The core PCE in Q4 was slightly higher at 0.9% compared with 0.8% previously, while headline PCE posted a 4.9% decline versus a 5.0% decline in the initial estimate. the outlook for the US jobs market remains bleak with weekly jobless claims creeping up further to 652k from 646k a week earlier.