Investing.com – The week beginning December 6 comes after one which saw the U.S. dollar tumble to a 3-week low against the yen, after a weaker-than-expected report on U.S. non-farm payrolls stoked fears over the strength of the U.S. recovery.
USD/JPY hit 84.39 on Monday, a 2-month high; the pair subsequently consolidated at 82.51 by close of trade on Friday, tumbling 1.79% over the week.
The pair is likely to find support at 81.54, the low of November 10 and resistance at 83.88, last Friday’s high.
On Friday, Labor Department data showed U.S. non-farm payrolls rose 39,000 last month, much weaker than expectations for 140,000 new jobs. The unemployment rate also increased to 9.8%, close to a 26-year high.
Also last week, Bank of Japan policy board member, Miyako Suda, said Wednesday that Japan's economy may be in for a prolonged slowdown, with deflationary pressures continuing to drag on the economy well into next year.
Ms. Suda said she sees "a high possibility" that the economy will contract in the fourth quarter as a strong yen and slowing export markets begin to take their toll.
Her forecast was the most pessimistic assessment yet by a member of the BOJ's nine-member policy board, its most senior policy-making body.
Next week, the U.S. is to release key weekly data on initial jobless claims, as well as a report on the country’s trade balance and preliminary data on consumer sentiment. Meanwhile, Federal Reserve Chairman, Ben Bernanke, is to appear in a televised interview.
Elsewhere, Japan is to publish revised data on third quarter gross domestic product as well as data on core machinery orders.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, December 6
In the U.S., Federal Reserve Chairman, Ben Bernanke is due to speak about monetary policy in an interview to be aired on CBS. The interview was given a week earlier.
Tuesday, December 7
The U.S. is to publish the IBD/TIPP index of economic optimism while later in the day the country is to publish official data on consumer credit.
Japan is to publish official data on core machinery orders, a leading indicator of production. The country is also to release data on bank lending, the national current account and money stock and publish an index of leading economic indicators.
Wednesday, December 8
Japan is to publish revised data on third quarter GDP, the leading indicator of economic growth as well as the GDP price index, the change in the price of all goods and services included in GDP. The country is also to publish an index of economic sentiment.
The U.S. is to publish official data on crude oil inventories.
Thursday, December 9
The U.S. is to release key weekly data on initial jobless claims, a leading indicator of economic health, as well as reports on wholesale inventories and natural gas storage.
Japan is to produce preliminary data on machine tool orders, as well as a report on manufacturing conditions, a leading indicator of manufacturing production. The country is also to publish the Corporate Goods Price Index, a leading indicator of consumer inflation.
Friday, December 10
The U.S. is to round up the week with official data on its trade balance, federal budget balance and import prices. The country is also set to publish preliminary data from the University of Michigan on consumer sentiment and inflation expectations.
Japan is to publish an index of household confidence, an important indicator of consumer spending.
USD/JPY hit 84.39 on Monday, a 2-month high; the pair subsequently consolidated at 82.51 by close of trade on Friday, tumbling 1.79% over the week.
The pair is likely to find support at 81.54, the low of November 10 and resistance at 83.88, last Friday’s high.
On Friday, Labor Department data showed U.S. non-farm payrolls rose 39,000 last month, much weaker than expectations for 140,000 new jobs. The unemployment rate also increased to 9.8%, close to a 26-year high.
Also last week, Bank of Japan policy board member, Miyako Suda, said Wednesday that Japan's economy may be in for a prolonged slowdown, with deflationary pressures continuing to drag on the economy well into next year.
Ms. Suda said she sees "a high possibility" that the economy will contract in the fourth quarter as a strong yen and slowing export markets begin to take their toll.
Her forecast was the most pessimistic assessment yet by a member of the BOJ's nine-member policy board, its most senior policy-making body.
Next week, the U.S. is to release key weekly data on initial jobless claims, as well as a report on the country’s trade balance and preliminary data on consumer sentiment. Meanwhile, Federal Reserve Chairman, Ben Bernanke, is to appear in a televised interview.
Elsewhere, Japan is to publish revised data on third quarter gross domestic product as well as data on core machinery orders.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, December 6
In the U.S., Federal Reserve Chairman, Ben Bernanke is due to speak about monetary policy in an interview to be aired on CBS. The interview was given a week earlier.
Tuesday, December 7
The U.S. is to publish the IBD/TIPP index of economic optimism while later in the day the country is to publish official data on consumer credit.
Japan is to publish official data on core machinery orders, a leading indicator of production. The country is also to release data on bank lending, the national current account and money stock and publish an index of leading economic indicators.
Wednesday, December 8
Japan is to publish revised data on third quarter GDP, the leading indicator of economic growth as well as the GDP price index, the change in the price of all goods and services included in GDP. The country is also to publish an index of economic sentiment.
The U.S. is to publish official data on crude oil inventories.
Thursday, December 9
The U.S. is to release key weekly data on initial jobless claims, a leading indicator of economic health, as well as reports on wholesale inventories and natural gas storage.
Japan is to produce preliminary data on machine tool orders, as well as a report on manufacturing conditions, a leading indicator of manufacturing production. The country is also to publish the Corporate Goods Price Index, a leading indicator of consumer inflation.
Friday, December 10
The U.S. is to round up the week with official data on its trade balance, federal budget balance and import prices. The country is also set to publish preliminary data from the University of Michigan on consumer sentiment and inflation expectations.
Japan is to publish an index of household confidence, an important indicator of consumer spending.