Yen holds onto gains despite downbeat household spending
January 10th - The dollar continues to edge its way higher against the major currencies but solid gains remain hard to come by with little economic data on the calendar. Chinese reserve diversification and a slowing of the US economy have combined to pressure the greenback, with USD JPY testing territory below the 114 area although some surprise economic news out from Tokyo overnight could leave this pair in a somewhat volatile mood in the days ahead. The Bank of Japan remains convinced that the cycle of deflation will be broken in the short term, yet household spending for November has shown a surprise contraction, confounding many in the market. The initial reaction has been somewhat muted, but tonight’s leading economic indicator data will be closely watched as a result. Expectations are for a notable fall, but October’s figure showed a sharp upturn and critically the market may well be happy with anything above the break even 50% mark. Essentially, if it wasn’t for the lacklustre sentiments towards the dollar right now then the Yen may well be depreciating. Thursday’s US trade balance data may prove to be the next significant item that can provide support for the dollar, but in the meantime, churning around current levels may continue.
Disclaimer: Although obtained from sources believed by us to be reliable, CMC Markets and its affiliates cannot guarantee the accuracy or completeness of the information upon which this commentary is based. This commentary does not purport to disclose the risks or benefits or entering into particular transactions and should not be construed as advice in any specific instance. The views in this report constitute our judgement as of this date and are subject to change without notice.
Fx-charts.com Disclaimer: The information contained on this website is subject to change without notice, views and opinions expressed on fx-charts.com may be those of individual authors and may not necessarily be the views of fx-charts.com or its officers and employees, we make no claim to the accuracy or timeliness of any information contained herein. We recommend obtaining advice from a suitably qualified financial advisor before entering into any financial transactions or agreements. The use of this website constitutes acceptance of our privacy policy, disclaimer and terms of use. This website is available for information and educational purposes only.
Need a forex broker? click on any of the buttons for more info!
