Forex Pros – Last week saw the dollar weaken against the yen, after a raft of mixed U.S. economic data underlined the likelihood that the Federal Reserve will continue to hold interest rates at record lows to support the U.S. economic recovery.
USD/JPY hit 82.95 on Friday, the pair’s lowest since March 31; the pair subsequently consolidated at 83.10 by close of trade, shedding 2.08% over the week.
The pair is likely to find support at 82.35, the low of March 31 and resistance at 84.26, the high of April 13.
Data on Thursday showed that U.S. initial jobless claims rose to a two-month high the previous week. Meanwhile, data on Friday showed that while consumer price inflation rose 0.5% in March, core CPI, which excludes food and energy prices, rose just 0.1%, less than the expected 0.2% gain.
Fed Vice Chairman Janet Yellen said Monday that an increase in food and fuel costs would have only a temporary impact on inflation and consumer spending and did not warrant a reversal of record monetary stimulus.
Meanwhile, on Friday, Japanese Finance Minister Yoshihiko Noda praised an intervention by the Group of Seven industrialized nations to weaken the yen after it soared in the wake of the March 11 earthquake-tsunami disaster.
“We wanted by all means to avoid the situation whereby the further appreciation of our currency would further negatively impact the Japanese economy,” Noda said.
In the week ahead, investors will be looking towards U.S. government data on building permits and home sales, while Japan is to publish official data on its trade balance.
Ahead of the coming week, Forex Pros has compiled a list of these and other significant events likely to affect the markets.
Monday, April 18
In the U.S., Federal Reserve Bank of Dallas President Richard Fisher is due to speak at two events in Atlanta.
Tuesday, April 19
Japan is to publish official data on household confidence, a leading indicator of consumer spending.
Also Tuesday, the U.S. is to publish government data on building permits, an excellent gauge of future construction activity as well as a report on housing starts, a leading indicator of economic health.
Wednesday, April 20
Japan is to publish official data on its trade balance, the difference in value between imported and exported goods and services, as well as data on tertiary industry activity, a leading indicator of economic health.
Later in the day, the U.S. is to publish industry data on existing home sales, a leading indicator of economic health. The country is also to publish a government report on crude oil stockpiles.
Thursday, April 21
The U.S. is to publish official data on initial jobless claims, the nation’s earliest employment data. The country is also to publish data on house prices and natural gas stockpiles. Meanwhile, the Federal Reserve Bank of Philadelphia is to publish an index of manufacturing activity, a leading indicator of economic health.
Friday, April 22
Markets in the euro zone, Switzerland, the United Kingdom, Canada, Australia and New Zealand will be closed for Good Friday.
ForexPros.com
