2016.10.1806:12:00UTC+00Yen Slides Amid Risk-appetite

The Japanese yen drifted lower against its major counterparts in early European deals on Tuesday amid risk appetite, as commodities strengthened on worries over outlook for U.S. interest-rate increases, while a slew of upbeat earnings reports also aided.

Crude oil for November delivery rose $0.40 to $50.34 per barrel.

Investors shrugged off a report on rising U.S. stockpiles last week, and focused on the details of a planned output cut by the Organization of the Petroleum Exporting Countries.

The American Petroleum Institute will release its crude inventories data later in the day, while the U.S. Department of Energy will publish its official figures on Wednesday.

A slew of Chinese data on GDP, industrial production, fixed asset investment and retail sales are slated for release on Wednesday, with investors looking for further signs of stability in the world's second-largest economy.

The European Central Bank meets on Thursday, with market participants looking for fresh clues on the time frame of its ?80 billion monthly asset-buying program.

The currency has been trading in a negative territory against its key counterparts, except the dollar, in the Asian session.

The yen declined to 104.13 against the greenback, following a 4-day high of 103.68 hit at 8:15 pm ET. The next possible support for the yen may be found around the 106.00 zone.

The yen slipped to 4-day lows of 127.66 against the pound and 114.68 against the euro, off its previous highs of 126.47 and 114.18, respectively. Continuation of the yen's downtrend may see it challenging support around 131.00 against the pound and 116.00 against the euro.

The yen, having advanced to a 5-day high of 104.94 against the Swiss franc at 8:00 pm ET, reversed direction and was trading lower at 105.25. If the yen extends slide, 107.00 is possibly seen as its next support level.

The yen weakened to a 3-month low of 80.02 against the aussie, near a 4-week low of 74.88 against the kiwi and a 1-1/2-month low of 79.66 against the loonie, from its early highs of 79.14, 74.05 and 79.04, respectively. Further weakness may take the yen to support levels of around 81.00 against the aussie, 75.5 against the kiwi and 81.00 against the loonie.

Looking ahead, Canada manufacturing sales data for August, U.S. CPI data for September and NAHB's U.S. housing market index for October are slated for release in the New York session.

At the same time, European Parliament's Brexit negotiator Guy Verhofstadt is expected to speak at conference on future of EU budget, reform of EU institutional set-up, in Brussels.

At 9:00 am ET, European Commission First Vice-President Frans Timmermans is expected to speak at the General Affairs Council meeting, in Luxembourg.