The USD/JPY pair dropped for the first time in three days, with the ongoing risk aversion which dominated the financial market and pushed the lower-yielding currencies higher as a safe haven.
The U.S. dollar is still recording gains against the euro and other major currencies, as the EU summit and the ECB policy did not provided strong measures to prevent the debt crisis from spreading to other countries.
On the other hand, the latest FOMC meeting put the Fed’s policy on hold, without adding new measures to the U.S. policy which added concerns regarding the outlook for the global economy and pushed investors to abandon higher-yielding currencies.
On Friday, the U.S. economy will release the Consumer Price Index for November at 13:30 GMT, where the prior reading was down by 0.1% and expected to come at 0.1%. As for the annual reading it’s expected to remain steady at 3.5%.
Originally posted here
