Thanksgiving break sees dollar lacking support; Yen buoyant
November 24th - The dollar has failed to make any progress through the Asian session as thin trading conditions have left markets in a somewhat volatile mood. There’s little of note on the economic calendar really until next week now, with many announcements being rescheduled to take account of the Thanksgiving holiday break. The Yen continues to claw its way back from recent lows with the USD JPY move to 120 looking a little more distant for the time being. Speculation that Japanese monetary policy may start to tighten as early as April 2006 combined with suggestions that the Fed’s hawkish stance over monetary policy may be coming to an end is without doubt providing a degree of support here, but whether this can be sustained into next week and on towards the year end remains to be seen. Japanese retail sales figures due on Monday may prove sufficient to deliver some extra momentum in this regard, but failure for at least a degree of expansion here could leave the BoJ plans for rate hikes looking doubtful and re-start that slide down to 120 against the greenback.
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