The pair continues to trade near its highest level since six month, as demand decreased on the Japanese yen as a safe haven after investors confidence increased in the market, pushing them to invest in the higher-yielding currencies.
On the other hand, expectations indicate that the US federal reserve along with the European Central Bank are on there path to raise interest rates, while the BOJ will probably continue its expansion in monetary policy to support the economy after the devastating earthquake that hit the country in the 11th of March.
Japanese economic data has lost its capacity to influence the movement of the Yen, as the selling pressure increased significantly on the Japanese currency; however, the Japanese central bank will hold its meeting this week, which could have a significant impact on the pair’s movement.
On Wednesday, at 05:00 GMT, the Japanese economy will announce the leading index for February which had a previous of 101.5 along with the issuance of the Coincident index which had a previous of 105.9, and at 23:50 GMT the current account will be announced, referring that the prior surplus was 461.9 billion yen.
This coincides with the absence of data from the US on Wednesday, where the current account data will dominant the pair movements, especially incase of having a widened trade surplus.
Originally posted here
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