The USD/JPY pair gained early Tuesday as the credit ratings agencies confirmed the steady rating for the United States despite the impasse at the super committee, which increased risk appetite in the financial market and reduced demand for safe haven.
The pair’s upside movement did not last for long, as the U.S. congress still failed to reach a decision which fuels uncertainty over the government’s ability to support weak growth as the downside pressure from the debt crisis in Europe grows.
Investors also remain jittery amid the critical situation in Europe as they watch the next step from officials and eye surging borrowing costs that threatens the spill of the crisis into other economies including Spain and France for now.
On Wednesday at 13:30 GMT, the U.S. economy will release the Durable Goods Orders for October, which is expected to come at -1.0% from the previous -0.8%.
Also the Personal Income for October will be released at the same time and expected to improve to 0.3% from 0.1% while the U.S. Personal Spending is expected to slow to 0.3% from 0.6%.
The annual Personal Consumption Expenditure Core for October is expected to come at 1.7% compare to the previous reading of 1.6%.
At 13:30 GMT, the U.S. economy will issue its weekly initial claims, where the number of people filing for first-time claims for the state unemployment insurance fell to 388 thousand last week.
Finally, the U.S. economy will release the University of Michigan Confidence for November at 14:55 GMT, where the final reading is expected to come at 64.5 from the prior reading of 64.2.
Originally posted here
