Investing.com – The U.S. dollar ended the week lower against the yen on Friday, as concerns over the ongoing debt crisis in the euro zone and the outlook for U.S. growth boosted demand for the safe haven yen.
USD/JPY hit 76.55 on Thursday, the pair’s lowest since September 2; the pair subsequently consolidated at 76.77 by close of trade on Friday, shedding 0.83% over the week.
The pair is likely to find short-term support at 76.41, the low of August 31 and resistance at 77.58, Monday’s high.
Concerns over the debt crisis in the euro zone intensified on Friday after a meeting of European Union finance ministers failed to reach an agreement over Finland’s demand that Greece provide collateral in exchange for further bailout funds.
Meanwhile, ratings agency Moody’s said it would extend its three-month review of Italy’s sovereign debt rating.
On Thursday, the dollar briefly touched a three-day high against the yen after the European Central Bank announced that it would provide additional dollar liquidity to euro area banks in a move coordinated with the Federal Reserve and other central banks.
The announcement eased concerns over funding shortages among European lenders and saw the euro jump more than 1% against the dollar and the yen.
But the dollar quickly trimmed gains after government data showed that U.S. retail sales were unchanged in August, following a smaller-than-expected 0.3% gain in July, while a separate report showed that U.S. jobless claims rose more-than-expected.
Other reports showed that U.S. consumer prices rose slightly more than expected last month while manufacturing activity in New York contracted unexpectedly.
The yen has seen an increase in safe haven inflows after last month’s intervention by the Swiss National Bank to halt the appreciation of the franc.
On Thursday, Japan’s Prime Minister Yoshihiko Noda reiterated that his country will take steps to curb the appreciation of the yen when necessary. "I am worried about the fact that the yen's one-sided move to the upside is continuing," he said.
In the coming week, investors will be watching the outcome of the Federal Reserve’s extended policy setting meeting on Wednesday for any signs that the bank is looking at providing fresh monetary stimulus to support the economy, while developments in the euro zone also look likely to remain in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, September 19
In Japan, markets will remain closed for a national holiday.
Tuesday, September 20
The U.S. is to publish government data on building permits, an excellent gauge of future construction activity, as well as a report on housing starts, a leading indicator of economic health.
Wednesday, September 21
Japan is to produce government data on the trade balance, the difference in value between imports and exports over the month.
Later Wednesday, the U.S. is to publish industry data on existing home sales as well as a government report on crude oil inventories. In addition, the Federal Reserve is to announce the federal funds rate. The banks’ rate statement will be closely watched by investors for any clues to the future direction of monetary policy.
Thursday, September 22
The U.S. is to publish its weekly report in initial jobless claims, a leading indicator of economic health.
Friday, September 23
Markets in Japan are to remain closed for a national holiday.
USD/JPY hit 76.55 on Thursday, the pair’s lowest since September 2; the pair subsequently consolidated at 76.77 by close of trade on Friday, shedding 0.83% over the week.
The pair is likely to find short-term support at 76.41, the low of August 31 and resistance at 77.58, Monday’s high.
Concerns over the debt crisis in the euro zone intensified on Friday after a meeting of European Union finance ministers failed to reach an agreement over Finland’s demand that Greece provide collateral in exchange for further bailout funds.
Meanwhile, ratings agency Moody’s said it would extend its three-month review of Italy’s sovereign debt rating.
On Thursday, the dollar briefly touched a three-day high against the yen after the European Central Bank announced that it would provide additional dollar liquidity to euro area banks in a move coordinated with the Federal Reserve and other central banks.
The announcement eased concerns over funding shortages among European lenders and saw the euro jump more than 1% against the dollar and the yen.
But the dollar quickly trimmed gains after government data showed that U.S. retail sales were unchanged in August, following a smaller-than-expected 0.3% gain in July, while a separate report showed that U.S. jobless claims rose more-than-expected.
Other reports showed that U.S. consumer prices rose slightly more than expected last month while manufacturing activity in New York contracted unexpectedly.
The yen has seen an increase in safe haven inflows after last month’s intervention by the Swiss National Bank to halt the appreciation of the franc.
On Thursday, Japan’s Prime Minister Yoshihiko Noda reiterated that his country will take steps to curb the appreciation of the yen when necessary. "I am worried about the fact that the yen's one-sided move to the upside is continuing," he said.
In the coming week, investors will be watching the outcome of the Federal Reserve’s extended policy setting meeting on Wednesday for any signs that the bank is looking at providing fresh monetary stimulus to support the economy, while developments in the euro zone also look likely to remain in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, September 19
In Japan, markets will remain closed for a national holiday.
Tuesday, September 20
The U.S. is to publish government data on building permits, an excellent gauge of future construction activity, as well as a report on housing starts, a leading indicator of economic health.
Wednesday, September 21
Japan is to produce government data on the trade balance, the difference in value between imports and exports over the month.
Later Wednesday, the U.S. is to publish industry data on existing home sales as well as a government report on crude oil inventories. In addition, the Federal Reserve is to announce the federal funds rate. The banks’ rate statement will be closely watched by investors for any clues to the future direction of monetary policy.
Thursday, September 22
The U.S. is to publish its weekly report in initial jobless claims, a leading indicator of economic health.
Friday, September 23
Markets in Japan are to remain closed for a national holiday.