The USD/JPY pair dropped last week to its lowest level in two weeks, while it managed to rise before the week end, where investors’ confidence controlled the market sentiment which drove currencies to fluctuate.
The US dollar returned to dominate the FX market after it witnessed some weakness with the beginning of 2012, as investors’ soon realized that the EU debt crisis still a big threat to the global economy.
The greenback also gets supported from the better than expectedU.S.data regarding the manufacturing sector, which increased signs of recovery for the global demand.
Expectations refer for further drop for the higher yielding currencies, which will increase demand for the safer assets such as the dollar and the yen.
On the other hand, the Japanese yen also get benefit from the current risk aversion in the financial market, as it soared to its highest level in eleven years against the euro.
The USD/JPY pair’s movements will depend on the next move from the BOJ, or the dollar performance against other majors in case the BOJ kept its monetary policy unchanged.
Major highlights for this week that will affect the USD/JPY pair’s trading:
Monday January 09:
On Monday at 20:00 GMT, theU.S.economy will release the Consumer Credit for November, where it’s expected to come at $7.00 billion from the prior reading of $7.645 billion.
Tuesday December 10:
On Tuesday at 15:00 GMT, theU.S.economy will issue the Wholesale Inventories for November, where the previous reading was up by 1.6% and it’s expected to retreat to 0.4%.
Wednesday December 11:
On Wednesday at 05:00 GMT,Japanwill release the Coincident Index for November, where the preliminary reading is expected to come at 90.3 from the prior 91.4.
On the other hand, the Japanese Leading Index for November is expected to show a preliminary reading of 92.9 from the prior reading of 92.0.
TheU.S.economy will issue the MBA Mortgage Applications at 12:00 GMT, which had a prior reading of – 4.10%.
Thursday December 12:
On Thursday at 23:50 GMT (Wednesday), the Japanese economy will issue the Current Account Total for November, where the expectations refer to a surplus of 246.8 billion yen from the prior surplus of 562.4 billion yen.
The Adjusted Current Account Total for November is expected to show a surplus of 446.0 billion yen from the prior reading of 518.6 billion yen. While the Trade Balance is expected to show a deficit of 599.4 billion yen, from the previous deficit of 206.1 billion yen.
At 05:00 GMT,Japanwill issue Eco Watchers Survey: Current for December which had a prior reading of 45, as for the Eco Watchers Survey: Outlook it had a previous reading of 44.7.
TheU.S.economy will release the Advance Retail Sales for December at 13:30 GMT, where the expectations refer to 0.2% the same as the previous reading. The Retail Sales Less Autos is expected to rise to 0.3% from the prior 0.2%.
At 13:30 GMT, U.S. economy will issue its weekly initial claims numbers, where the number of people filing for first-time claims for the state unemployment insurance increased 372 thousand last week.
The U.S. Business Inventories for November will be issued at 15:00 GMT, with a previous reading of 0.8% and the expectations refer to 0.4%. While the Monthly Budget Statement for December will be released at 19:00 GMT, and it’s expected to show a deficit of 79.0 billion.
Friday December 13:
On Friday at 13:30 GMT, theU.S.economy will issue the Import Price Index for December, where it’s expected to drop to 0.1% from the prior reading of 0.7%, while the annual reading had a previous reading of 9.9%.
The U.S. Trade Balance will be up at 13:30 GMT, where it’s expected to show a deficit of $45.0 billion from the prior deficit of $43.5 billion.
At 14:55 GMT, the University of Michigan Confidence for January will be up, where it had a prior reading of 69.9 and it’s expected to up to 70.3.
Originally posted here
