Investing.com - The U.S. dollar fell against the yen last week, as concerns over the outlook for global economic growth spurred increased safe haven demand, while data showing that Japan posted an unexpected trade surplus last month also boosted the currency.
USD/JPY hit 81.96 on Friday, the pair’s lowest since March 13; the pair subsequently consolidated at 82.33 by close of trade, dropping 1.27% over the week.
The pair is likely to find support at 81.45, the low of March 9 and resistance at 82.94, Friday’s high.
The dollar slid lower against the yen on Friday, after official data showed that U.S. new home sales fell for a second month in February, indicating that the recovery in the housing market remains uneven.
The Commerce Department said new home sales dropped 1.6% to a 313,000 annual pace, the slowest since October, from a 318,000 annual rate in January and against expectations for an increase to 325,000.
The yen strengthened broadly on Thursday, after government data showed that Japan posted an unexpected trade surplus in February, fuelling hopes that the economy is recovering.
Japan’s trade balance swung into a surplus of JPY32.92 billion last month, confounding expectations for a deficit of JPY120 billion, as exports exceeded imports.
The yen has come under pressure since last month’s surprise decision by the Bank of Japan to ease monetary policy and set a targeted inflation rate.
Earlier this month, the BoJ held off announcing any fresh easing measures following its policy meeting, but enlarged a loan fund for businesses in “high-growth” sectors, indicating that the central bank has not moved away from an easing policy.
Meanwhile, the euro weakened against the yen, pulling away from a five-month high after data on Thursday showed that manufacturing activity in the euro zone slumped unexpectedly in March, remaining in contraction territory for the eighth consecutive month, while service sector activity declined to the lowest level in four months.
In the week ahead, market participants will be looking ahead to Friday’s meeting of euro zone finance ministers to discuss the lending capacity of the region’s permanent bailout fund, the European Financial Stability Facility.
Meanwhile, the U.S. is to release data on consumer confidence, pending homes sales, and factory output, all of which will be closely watched in order to gauge the strength of the U.S. economic recovery.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, March 26
Federal Reserve Chairman Ben Bernanke is scheduled to speak at the National Association for Business Economists 2012 Policy Conference. The U.S. is also to publish industry data on pending home sales, a key gauge of economic health.
Tuesday, March 27
The U.S. is to produce a Standard & Poor’s/Case Shiller composite-20 house price inflation report, as well as industry data on consumer confidence.
Later in the day, Fed Chairman Bernanke is due to deliver the third part of a lecture titled "The Federal Reserve and its Role in Today's Economy" at the George Washington University School of Business, in Washington.
Wednesday, March 28
The U.S. is to publish government data on durable goods orders, a leading indicator of production, followed by a report on crude oil stockpiles.
Thursday, March 29
Japan is to produce government data on retail sales, the primary gauge of consumer spending.
Later Thursday, the U.S. is to publish government data on unemployment claims, a key signal of overall economic health, as well as final data on fourth quarter gross domestic product. Fed Chairman Ben Bernanke is also due to speak.
Friday, March 30
Japan is to publish official data on household spending, which accounts for a majority of overall economic activity, as well as on consumer price inflation in Tokyo. The country is also to produce preliminary data on industrial production, a key indicator of economic health.
The U.S. is to round up the week with government data on personal consumption expenditures and personal spending as well as industry data on the purchasing managers’ index in Chicago. In addition, the University of Michigan is to release revised data on consumer sentiment.
USD/JPY hit 81.96 on Friday, the pair’s lowest since March 13; the pair subsequently consolidated at 82.33 by close of trade, dropping 1.27% over the week.
The pair is likely to find support at 81.45, the low of March 9 and resistance at 82.94, Friday’s high.
The dollar slid lower against the yen on Friday, after official data showed that U.S. new home sales fell for a second month in February, indicating that the recovery in the housing market remains uneven.
The Commerce Department said new home sales dropped 1.6% to a 313,000 annual pace, the slowest since October, from a 318,000 annual rate in January and against expectations for an increase to 325,000.
The yen strengthened broadly on Thursday, after government data showed that Japan posted an unexpected trade surplus in February, fuelling hopes that the economy is recovering.
Japan’s trade balance swung into a surplus of JPY32.92 billion last month, confounding expectations for a deficit of JPY120 billion, as exports exceeded imports.
The yen has come under pressure since last month’s surprise decision by the Bank of Japan to ease monetary policy and set a targeted inflation rate.
Earlier this month, the BoJ held off announcing any fresh easing measures following its policy meeting, but enlarged a loan fund for businesses in “high-growth” sectors, indicating that the central bank has not moved away from an easing policy.
Meanwhile, the euro weakened against the yen, pulling away from a five-month high after data on Thursday showed that manufacturing activity in the euro zone slumped unexpectedly in March, remaining in contraction territory for the eighth consecutive month, while service sector activity declined to the lowest level in four months.
In the week ahead, market participants will be looking ahead to Friday’s meeting of euro zone finance ministers to discuss the lending capacity of the region’s permanent bailout fund, the European Financial Stability Facility.
Meanwhile, the U.S. is to release data on consumer confidence, pending homes sales, and factory output, all of which will be closely watched in order to gauge the strength of the U.S. economic recovery.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, March 26
Federal Reserve Chairman Ben Bernanke is scheduled to speak at the National Association for Business Economists 2012 Policy Conference. The U.S. is also to publish industry data on pending home sales, a key gauge of economic health.
Tuesday, March 27
The U.S. is to produce a Standard & Poor’s/Case Shiller composite-20 house price inflation report, as well as industry data on consumer confidence.
Later in the day, Fed Chairman Bernanke is due to deliver the third part of a lecture titled "The Federal Reserve and its Role in Today's Economy" at the George Washington University School of Business, in Washington.
Wednesday, March 28
The U.S. is to publish government data on durable goods orders, a leading indicator of production, followed by a report on crude oil stockpiles.
Thursday, March 29
Japan is to produce government data on retail sales, the primary gauge of consumer spending.
Later Thursday, the U.S. is to publish government data on unemployment claims, a key signal of overall economic health, as well as final data on fourth quarter gross domestic product. Fed Chairman Ben Bernanke is also due to speak.
Friday, March 30
Japan is to publish official data on household spending, which accounts for a majority of overall economic activity, as well as on consumer price inflation in Tokyo. The country is also to produce preliminary data on industrial production, a key indicator of economic health.
The U.S. is to round up the week with government data on personal consumption expenditures and personal spending as well as industry data on the purchasing managers’ index in Chicago. In addition, the University of Michigan is to release revised data on consumer sentiment.