Investing.com - The U.S. dollar ended the week little changed against the yen on Friday, trading in a narrow range as ongoing political uncertainty in Greece fuelled concerns over an escalation of the debt crisis in the euro zone and supported safe haven demand.
USD/JPY hit 79.42 on Wednesday, the pair’s lowest since February 20; the pair subsequently consolidated at 79.91 by close of trade on Friday, edging up 0.11% on the week.
The pair is likely to find support at 79.42, Wednesday’s low and a two-and-a-half month low and resistance at 80.39, the high of May 5.
Market sentiment was hit by increasing expectations that a fresh round of elections in Greece is inevitable, after attempts to form a coalition government failed.
On Friday, Alexis Tsipras the head of Greece’s largest anti-bailout party Syriza rejected a coalition with Socialists and Conservatives, fuelling concerns over the country’s ability to abide by the terms of its EUR130 billion bailout agreement.
Rating agency Fitch warned Friday that it would place the ratings of all euro zone members on review pending possible downgrades, if Greece was to exit the euro zone as a result of its current crisis.
Meanwhile, speculation over the health of Spain’s troubled banking system and the government’s ability to cut one of the largest deficits in the euro area also weighed on market sentiment.
The yen was stronger against the euro, with EUR/JPY settling at 103.22 on Friday, down 0.63% on the week.
The dollar found some support against the yen on Friday after U.S. data showed that consumer confidence hit a more than four-year high in May. A separate report showed that producer price inflation fell unexpectedly in April.
In the week ahead, investors will be watching developments in Greece as well as the first talks between the new French President Francois Hollande and German Chancellor Angela Merkel, amid fears that Hollande’s focus on growth rather than austerity measures as a means to tackle the euro zone crisis could spark tensions with Germany.
The U.S. is to produce government data on retail sales and inflation, while the Federal Reserve is to publish the minutes of this month’s policy setting meeting.
In addition, Japan is to publish preliminary data on first quarter economic growth.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, May 14
The U.S. is to produce a report on mortgage delinquencies, an important signal of the housing market’s health.
Tuesday, May 15
The U.S. is to publish official data on retail sales, the leading indicator of consumer spending, which accounts for the majority of overall economic activity. The country is also to publish official data on consumer price inflation, which accounts for a majority of overall inflation.
Reports on manufacturing activity in New York, as well as U.S. net long-term securities transactions and business inventories are also due for release.
Wednesday, May 16
Japan is to produce government data on core machinery orders, a leading indicator of production, as well as a report on tertiary industry activity.
The U.S. is to produce official data on building permits and housing starts, followed by reports by the Federal Reserve on the capacity utilization rate and industrial production. Government data is also to be released on crude oil inventories ahead of the minutes of the Fed’s May policy meeting.
Thursday, May 17
Japan is to release a preliminary estimate of first quarter gross domestic product, the broadest measure of economic activity and the primary gauge of the economy’s health.
The U.S. is to produce government data on unemployment claims, followed by a report on manufacturing activity in the Philadelphia area.
Friday, May 18
Members of the Group of Eight nations are to begin talks in Camp David, hosted by U.S. President Barak Obama.
USD/JPY hit 79.42 on Wednesday, the pair’s lowest since February 20; the pair subsequently consolidated at 79.91 by close of trade on Friday, edging up 0.11% on the week.
The pair is likely to find support at 79.42, Wednesday’s low and a two-and-a-half month low and resistance at 80.39, the high of May 5.
Market sentiment was hit by increasing expectations that a fresh round of elections in Greece is inevitable, after attempts to form a coalition government failed.
On Friday, Alexis Tsipras the head of Greece’s largest anti-bailout party Syriza rejected a coalition with Socialists and Conservatives, fuelling concerns over the country’s ability to abide by the terms of its EUR130 billion bailout agreement.
Rating agency Fitch warned Friday that it would place the ratings of all euro zone members on review pending possible downgrades, if Greece was to exit the euro zone as a result of its current crisis.
Meanwhile, speculation over the health of Spain’s troubled banking system and the government’s ability to cut one of the largest deficits in the euro area also weighed on market sentiment.
The yen was stronger against the euro, with EUR/JPY settling at 103.22 on Friday, down 0.63% on the week.
The dollar found some support against the yen on Friday after U.S. data showed that consumer confidence hit a more than four-year high in May. A separate report showed that producer price inflation fell unexpectedly in April.
In the week ahead, investors will be watching developments in Greece as well as the first talks between the new French President Francois Hollande and German Chancellor Angela Merkel, amid fears that Hollande’s focus on growth rather than austerity measures as a means to tackle the euro zone crisis could spark tensions with Germany.
The U.S. is to produce government data on retail sales and inflation, while the Federal Reserve is to publish the minutes of this month’s policy setting meeting.
In addition, Japan is to publish preliminary data on first quarter economic growth.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, May 14
The U.S. is to produce a report on mortgage delinquencies, an important signal of the housing market’s health.
Tuesday, May 15
The U.S. is to publish official data on retail sales, the leading indicator of consumer spending, which accounts for the majority of overall economic activity. The country is also to publish official data on consumer price inflation, which accounts for a majority of overall inflation.
Reports on manufacturing activity in New York, as well as U.S. net long-term securities transactions and business inventories are also due for release.
Wednesday, May 16
Japan is to produce government data on core machinery orders, a leading indicator of production, as well as a report on tertiary industry activity.
The U.S. is to produce official data on building permits and housing starts, followed by reports by the Federal Reserve on the capacity utilization rate and industrial production. Government data is also to be released on crude oil inventories ahead of the minutes of the Fed’s May policy meeting.
Thursday, May 17
Japan is to release a preliminary estimate of first quarter gross domestic product, the broadest measure of economic activity and the primary gauge of the economy’s health.
The U.S. is to produce government data on unemployment claims, followed by a report on manufacturing activity in the Philadelphia area.
Friday, May 18
Members of the Group of Eight nations are to begin talks in Camp David, hosted by U.S. President Barak Obama.