Investing.com – Last week saw the U.S. dollar fall to a fresh 15-year low against the yen, before retreating ahead of the weekend meetings of the G20 group of industrialized nations.
USD/JPY hit 80.84 on Wednesday, the pair’s lowest since April 20, 1995; the pair subsequently consolidated at 81.36 by close of trade on Friday, easing up 0.03% over the week.
The pair is likely to find support at 79.75, the low of April 19, 1995 and an all-time low, and resistance at 81.99, the high of October 7.
On Wednesday, the dollar hit a fresh 15-year low against the yen after Japan’s Chief Cabinet Secretary Yoshito Sengoku said that the country hadn’t set a line to defend its currency at 82 yen per dollar following a meeting between the country’s prime minister and finance minister.
“It wasn’t about whether 82 yen was the line, but that the Finance Ministry will monitor the currency markets and we’ll take decisive measures appropriately at an appropriate timing,” Sengoku said.
But the dollar edged higher on Friday, ahead of the G20 meetings, which focused on addressing simmering tensions between countries over exchange rate differences.
Following the meetings, leaders pledged to shun competitive currency devaluations, but pulled up short of setting targets to reduce trade imbalances that are overshadowing prospects for global growth.
Next week, the U.S. is to publish official data relating to the housing sector as well as data on consumer confidence, manufacturing, and GDP. The country will also publish a key weekly report on jobless claims while the chairman of the Federal Reserve is due to speak.
Meanwhile, the Bank of Japan is to announce its benchmark interest rate while the country is also to release official data on retail sales, CPI and industrial production.
Monday, October 25
The U.S. is to publish official data on existing home sales, a leading indicator of economic health while Federal Reserve Chairman Ben Bernanke is to speak at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Meanwhile, Japan is to start off the week by producing key data on its trade balance, the difference in value between imported and exported goods. Later in the day, the country was also due to publish a report on its corporate services price index, a leading indicator of consumer inflation.
Tuesday, October 26
The U.S. is to publish data on consumer confidence, a leading indicator of consumer spending, which accounts for approximately 70% of all economic activity. The country is also due to release both industry data and official data on house prices as well as a report on manufacturing activity in the Richmond area.
Wednesday, October 27
The U.S. is to publish government data on durable goods orders, a leading indicator of production. The country is also to publish official data on new home sales, a leading indicator of health in the housing sector as well as a report on crude oil inventories.
Later in the day, Japan is to publish data on retail sales, a leading indicator of consumer confidence.
Thursday, October 28
The Bank of Japan will announce its benchmark interest rate and the announcement will be followed by a closely watched press conference. The bank is also due to publish its outlook report, which provides valuable insight into the bank's view of economic conditions and inflation.
Later in the day, the country is also due to produce key data on its unemployment rate, as well as data on manufacturing activity, household spending, industrial production and consumer price inflation for both Japan and the Tokyo area.
Meanwhile, the U.S. is to publish key weekly data on initial jobless claims, a leading indicator of economic health, as well as information on natural gas stockpiles.
Friday, October 29
The U.S. is to round up the week by producing preliminary data on GDP, the leading indicator of economic growth. The country is also to publish a report on manufacturing activity in Chicago, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations.
Meanwhile, Japan is to produce official data on housing starts, a leading indicator of economic health.
USD/JPY hit 80.84 on Wednesday, the pair’s lowest since April 20, 1995; the pair subsequently consolidated at 81.36 by close of trade on Friday, easing up 0.03% over the week.
The pair is likely to find support at 79.75, the low of April 19, 1995 and an all-time low, and resistance at 81.99, the high of October 7.
On Wednesday, the dollar hit a fresh 15-year low against the yen after Japan’s Chief Cabinet Secretary Yoshito Sengoku said that the country hadn’t set a line to defend its currency at 82 yen per dollar following a meeting between the country’s prime minister and finance minister.
“It wasn’t about whether 82 yen was the line, but that the Finance Ministry will monitor the currency markets and we’ll take decisive measures appropriately at an appropriate timing,” Sengoku said.
But the dollar edged higher on Friday, ahead of the G20 meetings, which focused on addressing simmering tensions between countries over exchange rate differences.
Following the meetings, leaders pledged to shun competitive currency devaluations, but pulled up short of setting targets to reduce trade imbalances that are overshadowing prospects for global growth.
Next week, the U.S. is to publish official data relating to the housing sector as well as data on consumer confidence, manufacturing, and GDP. The country will also publish a key weekly report on jobless claims while the chairman of the Federal Reserve is due to speak.
Meanwhile, the Bank of Japan is to announce its benchmark interest rate while the country is also to release official data on retail sales, CPI and industrial production.
Monday, October 25
The U.S. is to publish official data on existing home sales, a leading indicator of economic health while Federal Reserve Chairman Ben Bernanke is to speak at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Meanwhile, Japan is to start off the week by producing key data on its trade balance, the difference in value between imported and exported goods. Later in the day, the country was also due to publish a report on its corporate services price index, a leading indicator of consumer inflation.
Tuesday, October 26
The U.S. is to publish data on consumer confidence, a leading indicator of consumer spending, which accounts for approximately 70% of all economic activity. The country is also due to release both industry data and official data on house prices as well as a report on manufacturing activity in the Richmond area.
Wednesday, October 27
The U.S. is to publish government data on durable goods orders, a leading indicator of production. The country is also to publish official data on new home sales, a leading indicator of health in the housing sector as well as a report on crude oil inventories.
Later in the day, Japan is to publish data on retail sales, a leading indicator of consumer confidence.
Thursday, October 28
The Bank of Japan will announce its benchmark interest rate and the announcement will be followed by a closely watched press conference. The bank is also due to publish its outlook report, which provides valuable insight into the bank's view of economic conditions and inflation.
Later in the day, the country is also due to produce key data on its unemployment rate, as well as data on manufacturing activity, household spending, industrial production and consumer price inflation for both Japan and the Tokyo area.
Meanwhile, the U.S. is to publish key weekly data on initial jobless claims, a leading indicator of economic health, as well as information on natural gas stockpiles.
Friday, October 29
The U.S. is to round up the week by producing preliminary data on GDP, the leading indicator of economic growth. The country is also to publish a report on manufacturing activity in Chicago, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations.
Meanwhile, Japan is to produce official data on housing starts, a leading indicator of economic health.