USD/JPY Forecast Jan. 18, 2012, Fundamental Analysis
The USD/JPY pair dropped further to its lowest level in three months, where the safe haven currencies retreated against most other majors after the Chinese economy expanded more than estimated.
The euro and other majors recovered against the yen and the greenback after China reported its GDP reading, where the second largest economy in the world expanded by 8.9 percentages on the yearly basis during the fourth quarter, better than the expected growth of 8.7%.
On the other hand, the US dollar lost more ground against higher yielding currencies, while the Japanese yen showed more strength against the Federal currency as Japan reported strong Machine Orders during November with the beginning of the week.
On Wednesday at 04:30 GMT, Japan will issue the Industrial Production for November, where the previous reading was -2.6% while the annual reading had a prior reading of -4.0%.
On the other hand, the Japanese Capacity Utilization for November had a prior reading of 4.1%.
At 13:30 GMT, the U.S. economy will release the Producer Price Index for December, where the prior reading was 0.3% and expected to come at 0.1%, on the other hand the annual Producer Price Index had a prior reading of 5.7% and it’s expected to come at 5.1%.
The Total Net TIC Flows for November will be released at 14:00 GMT, with a previous reading of -$48.8 billion, while the Net Long-term TIC Flows had a previous reading of $4.8 billion.
The U.S. Industrial Production for December will be released at 14:15 GMT, and expected at 0.5% after 0.2% drop. The Capacity Utilization for December had a prior reading of 77.8% with expectations to rise to 78.1%.
Originally posted here
