Investing.com - The U.S. dollar ended the week lower against the safe-haven yen on Friday, as concerns over the economic and fiscal outlook for the euro zone, as well as worries over U.S. fiscal policy supported demand for the yen.
USD/JPY hit 79.06 on Friday, the pair’s lowest since October 18; the pair subsequently consolidated at 79.46 by close of trade, 1.19% lower for the week.
The pair is likely to find support at 78.90, the low of October 18 and resistance at 80.00, Thursday’s high.
Concerns over the economic outlook for the euro zone mounted on Friday after Germany’s Economic Ministry warned that growth in the bloc’s largest economy was likely to weaken in the fourth quarter and going into the first quarter of 2013.
Market participants were also anticipating a Greek vote on the 2013 budget on Sunday, just days after the parliament narrowly approved a new austerity package needed to secure the next tranche of bailout funds.
Without the next aid installment, Greece risks default on November 16, when Athens must repay EUR5 billion of debts.
Demand for the yen was also underpinned by concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1 unless lawmakers can reach an agreement, which could threaten U.S. and global growth.
The dollar came off session lows against the yen on Friday, to end the day almost unchanged, after a report showed that U.S. consumer confidence improved more-than-expected in November.
The University of Michigan preliminary consumer sentiment index rose to 84.9, the fourth successive monthly increase and the highest level since July 2007, from 82.6 in October, compared to expectations for a reading of 83.0.
In the coming week, investors will be anticipating preliminary data on third quarter growth from the euro zone, amid concerns that the economic downturn in the region is deepening. Markets will also be closely following developments in Greece and Spain.
Meanwhile, Japan is to produce data on third quarter growth amid ongoing concerns over the impact of the strong yen on the country’s largely export driven economy.
In addition, the Federal Reserve is to publish the minutes of its most recent policy setting meeting.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 12
Japan is to release preliminary data on third quarter gross domestic product, the widest measure of economic activity and the foremost indicator of the economy's health. The country is also to release government data on tertiary industry activity. Later in the day, Bank of Japan Governor Masaaki Shirakawa is to speak; his comments will be closely watched for any indications on the future possible direction of monetary policy.
Markets in the U.S. are to remain closed on Monday for a national holiday.
Tuesday, November 13
The U.S. is to release official data on the federal budget balance.
Wednesday, November 14
The U.S. is to produce government data on retail sales, the leading indicator of consumer spending, which accounts for the majority of overall economic activity.
The country is also to release official data on producer price inflation and business inventories, while the Fed is to publish the minutes of its most recent policy-setting meeting.
Thursday, November 15
The U.S. is to release a flurry of data, with reports on initial jobless claims, consumer price inflation, crude oil stockpiles, in addition to data on manufacturing activity in New York and Philadelphia.
Meanwhile, a speech by Federal Reserve Chairman Ben Bernanke will be closely watched for any indications on the future possible direction of monetary policy.
Friday, November 16
The U.S. is to round up the week with official data on the capacity utilization rate and industrial production, as well as a report on the balance of domestic and foreign securities purchases.
USD/JPY hit 79.06 on Friday, the pair’s lowest since October 18; the pair subsequently consolidated at 79.46 by close of trade, 1.19% lower for the week.
The pair is likely to find support at 78.90, the low of October 18 and resistance at 80.00, Thursday’s high.
Concerns over the economic outlook for the euro zone mounted on Friday after Germany’s Economic Ministry warned that growth in the bloc’s largest economy was likely to weaken in the fourth quarter and going into the first quarter of 2013.
Market participants were also anticipating a Greek vote on the 2013 budget on Sunday, just days after the parliament narrowly approved a new austerity package needed to secure the next tranche of bailout funds.
Without the next aid installment, Greece risks default on November 16, when Athens must repay EUR5 billion of debts.
Demand for the yen was also underpinned by concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1 unless lawmakers can reach an agreement, which could threaten U.S. and global growth.
The dollar came off session lows against the yen on Friday, to end the day almost unchanged, after a report showed that U.S. consumer confidence improved more-than-expected in November.
The University of Michigan preliminary consumer sentiment index rose to 84.9, the fourth successive monthly increase and the highest level since July 2007, from 82.6 in October, compared to expectations for a reading of 83.0.
In the coming week, investors will be anticipating preliminary data on third quarter growth from the euro zone, amid concerns that the economic downturn in the region is deepening. Markets will also be closely following developments in Greece and Spain.
Meanwhile, Japan is to produce data on third quarter growth amid ongoing concerns over the impact of the strong yen on the country’s largely export driven economy.
In addition, the Federal Reserve is to publish the minutes of its most recent policy setting meeting.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 12
Japan is to release preliminary data on third quarter gross domestic product, the widest measure of economic activity and the foremost indicator of the economy's health. The country is also to release government data on tertiary industry activity. Later in the day, Bank of Japan Governor Masaaki Shirakawa is to speak; his comments will be closely watched for any indications on the future possible direction of monetary policy.
Markets in the U.S. are to remain closed on Monday for a national holiday.
Tuesday, November 13
The U.S. is to release official data on the federal budget balance.
Wednesday, November 14
The U.S. is to produce government data on retail sales, the leading indicator of consumer spending, which accounts for the majority of overall economic activity.
The country is also to release official data on producer price inflation and business inventories, while the Fed is to publish the minutes of its most recent policy-setting meeting.
Thursday, November 15
The U.S. is to release a flurry of data, with reports on initial jobless claims, consumer price inflation, crude oil stockpiles, in addition to data on manufacturing activity in New York and Philadelphia.
Meanwhile, a speech by Federal Reserve Chairman Ben Bernanke will be closely watched for any indications on the future possible direction of monetary policy.
Friday, November 16
The U.S. is to round up the week with official data on the capacity utilization rate and industrial production, as well as a report on the balance of domestic and foreign securities purchases.