Investing.com - The Japanese yen rebounded against the dollar on Monday after a survey by the Bank of Japan showed major manufacturers are their most upbeat in six years.
USD/JPY traded at 103.16, down 0.05, after the BoJ Tankan survey that showed sentiment among large-manufacturers rose to +16 in the three months to December from +12 in the previous poll announced in September. That's the highest since +19 in December 2007, and compared with +15 forecast. The JPY initially weakened after the data.
The large non-manufacturers index came to +20, the best reading since September 2007 and up six points from the previous survey.
Elsewhere in Asia AUD/USD traded at 0.8952, down 0.18%.
Last week, the dollar hit its strongest level in five years against the yen on Friday and rose against the euro amid expectations the Federal Reserve could begin scaling back its monthly bond buying program as soon as this month.
An agreement on a two-year U.S. budget deal was also seen as removing an obstacle to the winding back of monetary stimulus.
The dollar pulled back from highs as investors locked in profits, while data showing that U.S. producer price inflation fell 0.1% in November sparked concerns over the sluggish inflation outlook.
The soft inflation data did little to alter expectations that the Fed will begin withdrawing stimulus in the next few months after the latest U.S. nonfarm payrolls report showed that the U.S. economy added more jobs than expected in November.
The euro also scaled five year peaks against the yen on Friday, with EUR/JPY rising to 142.83, the highest level since October 2008, before pulling back to 141.81, ending the session 0.27% lower.
Meanwhile, Australia’s dollar ended the week close to three month lows against the U.S. dollar after the country’s central bank Governor Glenn Stevens said the bank wanted to see the Aussie’s exchange rate closer to 0.85 U.S. cents in order to support the economy.
In the week ahead, investors will be focusing on Wednesday’s outcome of the Fed’s monthly policy meeting, and a press conference with Chairman Ben Bernanke will be closely watched.
The euro zone is to release data on manufacturing and service sector activity, while the ZEW index of German economic sentiment will be keenly awaited. In addition the BoJ is to hold what will be its final policy meeting of the year.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
The euro zone is to publish data on manufacturing and service sector activity, while Germany and France are to publish individual reports. Germany’s central bank is to publish its monthly report.
The U.K. is to release private sector data on industrial order expectations.
Canada is to publish a report on foreign securities purchases.
The U.S. is to release reports on industrial production, manufacturing activity in the New York region and the balance of foreign and domestic investment in U.S. securities.
USD/JPY traded at 103.16, down 0.05, after the BoJ Tankan survey that showed sentiment among large-manufacturers rose to +16 in the three months to December from +12 in the previous poll announced in September. That's the highest since +19 in December 2007, and compared with +15 forecast. The JPY initially weakened after the data.
The large non-manufacturers index came to +20, the best reading since September 2007 and up six points from the previous survey.
Elsewhere in Asia AUD/USD traded at 0.8952, down 0.18%.
Last week, the dollar hit its strongest level in five years against the yen on Friday and rose against the euro amid expectations the Federal Reserve could begin scaling back its monthly bond buying program as soon as this month.
An agreement on a two-year U.S. budget deal was also seen as removing an obstacle to the winding back of monetary stimulus.
The dollar pulled back from highs as investors locked in profits, while data showing that U.S. producer price inflation fell 0.1% in November sparked concerns over the sluggish inflation outlook.
The soft inflation data did little to alter expectations that the Fed will begin withdrawing stimulus in the next few months after the latest U.S. nonfarm payrolls report showed that the U.S. economy added more jobs than expected in November.
The euro also scaled five year peaks against the yen on Friday, with EUR/JPY rising to 142.83, the highest level since October 2008, before pulling back to 141.81, ending the session 0.27% lower.
Meanwhile, Australia’s dollar ended the week close to three month lows against the U.S. dollar after the country’s central bank Governor Glenn Stevens said the bank wanted to see the Aussie’s exchange rate closer to 0.85 U.S. cents in order to support the economy.
In the week ahead, investors will be focusing on Wednesday’s outcome of the Fed’s monthly policy meeting, and a press conference with Chairman Ben Bernanke will be closely watched.
The euro zone is to release data on manufacturing and service sector activity, while the ZEW index of German economic sentiment will be keenly awaited. In addition the BoJ is to hold what will be its final policy meeting of the year.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
The euro zone is to publish data on manufacturing and service sector activity, while Germany and France are to publish individual reports. Germany’s central bank is to publish its monthly report.
The U.K. is to release private sector data on industrial order expectations.
Canada is to publish a report on foreign securities purchases.
The U.S. is to release reports on industrial production, manufacturing activity in the New York region and the balance of foreign and domestic investment in U.S. securities.