Dollar buoyant against Yen despite jump in Japanese GDP
February 17th - Despite unexpected jumps in US unemployment and Japanese GDP, the Yen has remained under pressure against the dollar in recent trade. Robust housing data and a general acceptance of Ben Bernanke’s testimony seem to be lending support whilst the incremental gains seen from the JPY proved impossible to sustain and with many American markets closed on Monday, there appears to have been a trend towards booking profits ahead of the long weekend. Obviously traders will remain on the lookout for further indications as to when the Bank of Japan may start to tighten its monetary policy but with Michigan consumer sentiment and PPI data due from the US later in the session, the prospect of further short term dollar gains cannot be ruled out just yet. With little else on the economic calendar ahead of the weekend break other major currency pairs can be expected to take their leads from the dollar, but with the ongoing prospect of further rate hikes from the Fed as we move through 2006, the greenback looks set to maintain its dominant position…
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