By FX Empire.com
The USD/JPY retreated for the second day after markets lost confidence once again, as Moody’s Investors Service reported that France’s sovereign debt rating is facing great pressure.
The Moody’s announcement fueled fears between investors regarding the EU debt crisis, and it’ potential to spread among other European countries.
Investors abandoned higher-yielding currencies and shifted to yen and US dollar as a safe haven, where the greenback reached its highest level in five days against the euro, while it lost its previous gains against the Japanese yen.
On Wednesday at 04:30 GMT, the Japanese economy will release the All Industry Activity Index for August, where it had a previous reading of 0.4% and expected to fall to 0.5%.
The U.S. economy will issue the Consumer Price Index for September at 12:30 GMT, where it’s expected to come at 0.3% from the previous reading of 0.4%, as for the annual Consumer Price Index it’s expected to hold at 3.8%.
The U.S. Housing Starts for September will be released as well at 12:30 GMT with and expected to rise to 595 thousand by 3.9% from the previous 571 thousand. The Building Permits on the other hand are expected with a drop by 2.4% to 610 from 620 thousand.
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