Investing.com - The U.S. dollar ended the week higher against the broadly weaker yen, as speculation that the Bank of Japan is set to announce new stimulus measures to bolster growth weighed.
USD/JPY hit 81.60 on Friday, the pair’s highest since April 10; the pair subsequently consolidated at 81.49 by close of trade on Friday, gaining 0.80% over the week.
The pair is likely to find support at 80.81, the low of April 13 and resistance at 82.54, the high of April 6.
On Thursday, BoJ Governor Masaaki Shirakawa said the central bank was “committed” to monetary easing in order to meet Japan’s 1% targeted rate of inflation.
Also Thursday, preliminary data showed that Japan posted a record JPY4.41 trillion trade deficit for the fiscal year ending on March 31, as imports of oil and gas to produce electricity increased, with most of the country’s nuclear reactors still offline.
In the U.S., data on Thursday showed that manufacturing activity in the Philadelphia-region expanded at a slower rate than expected in April and U.S. existing home sales declined unexpectedly last month.
The data came after a government report showing that the number of people who filed for unemployment assistance in the U.S. last week fell less-than-expected, while the previous week’s figure was revised higher.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending April 14 fell by 2,000 to a seasonally adjusted 386,000, disappointing expectations for a decline of 18,000 to 370,000.
The previous week’s figure was revised up to 388,000 from 380,000.
The soft data sparked concerns over the strength of the U.S. economic recovery, ahead of the Federal Reserve’s two-day policy meeting this week.
The yen also ended the week lower against the euro, with EUR/JPY settling at 107.74 on Friday, hovering just below a two-week low.
The euro found support after the International Monetary Fund boosted its capacity to fight the euro zone debt crisis, while stronger-than-forecast data on German business sentiment eased concerns over the outlook for the bloc’s largest economy.
In the week ahead, investors will be eyeing the Fed’s rate statement for any signs that the central bank is leaning towards another round of monetary easing, while the yen looks set to remain under pressure ahead of the outcome of Friday’s BoJ policy meeting.
In addition, the U.S. is to release preliminary data on first quarter gross domestic product.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Monday, as there are no relevant events on this day.
Tuesday, April 24
The U.S. is to produce a report on house price inflation, a key indicator of the housing industry’s health, as well as a Conference Board report on consumer confidence and government data on new home sales.
Wednesday, April 25
The U.S. is to publish government data on durable goods orders, a leading indicator of production, and crude oil stockpiles. The Fed is to announce its benchmark interest rate and release its rate statement. Also Wednesday, U.S. Treasury Secretary Timothy Geithner is scheduled to speak.
Thursday, April 26
The U.S. is to publish government data on initial unemployment claims, an important signal of overall economic health, as well as industry data on pending home sales.
Friday, April 27
Japan is to publish official data on household spending, which accounts for a majority of overall economic activity, followed by a report on core CPI in Tokyo. The country is also to publish preliminary data on industrial production and government data on retail sales.
Later in the day, the BoJ is to release its monetary policy statement, followed by the overnight call rate, an outlook report and a press conference.
The U.S. is to round up the week with preliminary data on first quarter GDP, the broadest measure of economic activity and the primary gauge of the economy’s health, as well as reports on the GDP price index and employment cost inflation. In addition, the University of Michigan is to release revised data on consumer sentiment.
USD/JPY hit 81.60 on Friday, the pair’s highest since April 10; the pair subsequently consolidated at 81.49 by close of trade on Friday, gaining 0.80% over the week.
The pair is likely to find support at 80.81, the low of April 13 and resistance at 82.54, the high of April 6.
On Thursday, BoJ Governor Masaaki Shirakawa said the central bank was “committed” to monetary easing in order to meet Japan’s 1% targeted rate of inflation.
Also Thursday, preliminary data showed that Japan posted a record JPY4.41 trillion trade deficit for the fiscal year ending on March 31, as imports of oil and gas to produce electricity increased, with most of the country’s nuclear reactors still offline.
In the U.S., data on Thursday showed that manufacturing activity in the Philadelphia-region expanded at a slower rate than expected in April and U.S. existing home sales declined unexpectedly last month.
The data came after a government report showing that the number of people who filed for unemployment assistance in the U.S. last week fell less-than-expected, while the previous week’s figure was revised higher.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending April 14 fell by 2,000 to a seasonally adjusted 386,000, disappointing expectations for a decline of 18,000 to 370,000.
The previous week’s figure was revised up to 388,000 from 380,000.
The soft data sparked concerns over the strength of the U.S. economic recovery, ahead of the Federal Reserve’s two-day policy meeting this week.
The yen also ended the week lower against the euro, with EUR/JPY settling at 107.74 on Friday, hovering just below a two-week low.
The euro found support after the International Monetary Fund boosted its capacity to fight the euro zone debt crisis, while stronger-than-forecast data on German business sentiment eased concerns over the outlook for the bloc’s largest economy.
In the week ahead, investors will be eyeing the Fed’s rate statement for any signs that the central bank is leaning towards another round of monetary easing, while the yen looks set to remain under pressure ahead of the outcome of Friday’s BoJ policy meeting.
In addition, the U.S. is to release preliminary data on first quarter gross domestic product.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Monday, as there are no relevant events on this day.
Tuesday, April 24
The U.S. is to produce a report on house price inflation, a key indicator of the housing industry’s health, as well as a Conference Board report on consumer confidence and government data on new home sales.
Wednesday, April 25
The U.S. is to publish government data on durable goods orders, a leading indicator of production, and crude oil stockpiles. The Fed is to announce its benchmark interest rate and release its rate statement. Also Wednesday, U.S. Treasury Secretary Timothy Geithner is scheduled to speak.
Thursday, April 26
The U.S. is to publish government data on initial unemployment claims, an important signal of overall economic health, as well as industry data on pending home sales.
Friday, April 27
Japan is to publish official data on household spending, which accounts for a majority of overall economic activity, followed by a report on core CPI in Tokyo. The country is also to publish preliminary data on industrial production and government data on retail sales.
Later in the day, the BoJ is to release its monetary policy statement, followed by the overnight call rate, an outlook report and a press conference.
The U.S. is to round up the week with preliminary data on first quarter GDP, the broadest measure of economic activity and the primary gauge of the economy’s health, as well as reports on the GDP price index and employment cost inflation. In addition, the University of Michigan is to release revised data on consumer sentiment.