Forex Pros – The U.S. dollar eased off a two-week low against the yen on Monday, but gains were limited amid concerns over the outlook for U.S. growth and fears over a possible restructuring of Greek debt.
USD/JPY hit 80.96 during early European trade, the daily high; the pair subsequently consolidated at 80.83, easing up 0.05%.
The pair was likely to find short-term support at 80.33, the low of May 13 and resistance at 81.41, Friday’s high.
On Friday, industry data showed that U.S. pending home sales fell 11.6% in April, much more the 1.0% decline forecast. A separate report showed that U.S. customer spending rose just 0.4% last month, less than the expected 0.5% gain.
The weak data added to expectations that the Federal Reserve was unlikely to tighten monetary policy for some time to come.
Meanwhile, markets were awaiting the results of a review of Greece’s progress on meeting fiscal targets by the International Monetary Fund, the European Union and the European Central Bank later in the week.
Elsewhere, the yen was higher against the euro, with EUR/JPY sliding 0.20% to hit 115.44.
Also Monday, liquidity was relatively thin as U.K. markets were to stay closed for the Spring Bank Holiday and U.S. markets for Memorial Day.
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