Yen Falls As European Shares Inch Higher

(RTTNews) - The Japanese yen weakened against other major currencies in the European session on Friday, as European shares eked out modest gains, with signs of easing Sino-U.S. trade tensions and some upbeat corporate earnings helping underpin investor sentiment.

U.S. President Donald Trump refuted Beijing claims of no trade talks, asserting that talks are underway.

China may consider exempting some U.S. goods from tariffs as the economic costs of the tit-for-tat trade war weigh heavily on certain industries, Bloomberg News reported, citing people familiar with the matter.

Tokyo's consumer inflation rate increased in April, according to statistics released earlier this Friday, which also reduced expectations that the Bank of Japan (BoJ) will raise interest rates further in 2025.

In the European trading now, the safe-haven yen fell to a 3-week low of 191.24 against the pound, from early highs of 190.06. On the downside, 196.00 is seen as the next support level for the yen.

In economic releases, U.K. retail sales grew unexpectedly in March as good weather boosted sales of clothing and outdoor retailers, the Office for National Statistics said.

Retail sales grew 0.4 percent on a monthly basis, confounding expectations for a decline of 0.3 percent. However, this was slower than the 0.7 percent increase in February and marked the third consecutive increase.

On a yearly basis, retail sales growth advanced to 2.6 percent from 1.8 percent in February. Similarly, core retail sales growth improved to 3.3 percent from 1.8 percent.

Against the euro and the U.S. dollar, the yen slipped to near 2-week lows of 163.15 and 143.85 from early highs of 162.13 and 142.82, respectively. If the yen extends its downtrend, it is likely to find support around 166.00 against the euro and 150.00 against the greenback.

The yen edged down to 172.93 against the Swiss franc, from an early high of 172.05. The next possible downside target for the yen is seen around the 177.00 region.

Looking ahead, Canada retail and manufacturing sales data for March, U.S. University of Michigan's consumer sentiment for April, Canada budget balance for February and U.S. Baker Hughes oil rig count data are slated for release in the New York session.