Investing.com - The U.S. dollar rose to a five-week high against the yen on Friday, bolstered by diminished expectations for more easing by the Federal Reserve, following stronger-than-forecast U.S. economic data.
USD/JPY hit 78.15 on Monday, the weekly low; the pair subsequently consolidated at 79.54 by close of trade on Friday, gaining 1.67% over the week.
The pair is likely to find support at 78.90, Thursday’s low and resistance at 79.94, the high of July 12.
Data on Friday showed that the University of Michigan’s consumer sentiment index for August hit its highest level in three months, coming in at 73.6 from 72.3 in July and outstripping forecasts for a reading of 72.4.
Meanwhile, the Conference Board reported that its index of leading indicators rose more-than-expected in July.
The data came after better-than-expected U.S. retail sales and industrial production data earlier in the week tempered expectations for another round of quantitative easing by the U.S. central bank.
The yen came under pressure earlier in the week after Tuesday’s minutes of the Bank of Japan’s August meeting indicated that policymakers have not ruled out further stimulus measures to bolster growth.
One day earlier, government data showed that Japan’s economy grew 0.3% in the three months to June, just half as much as expectations for a 0.6% expansion, from an upwardly revised 1.2% in the first quarter, as export demand was hit by the ongoing debt crisis in Europe.
The yen fell to a six-week low against the euro on Friday, with EUR/JPY settling at 98.11, up 0.10% on the day.
In the week ahead, market participants will be awaiting Wednesday’s minutes of the Federal Reserve’s August meeting for any indications on the future possible direction of monetary policy. The U.S. is also to release closely watched reports on the housing sector and manufacturing production.
In Japan, BoJ Governor Masaaki Shirakawa is to speak on Friday; his comments will be closely watched.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
The guide skips Monday and Tuesday, as there are no relevant events on these days.
Wednesday, August 22
Japan is to produce government data on the trade balance, the difference in value between imported and exported goods.
Later in the day, the Federal Reserve is to produce the minutes of its August policy meeting, amid growing speculation over whether the U.S. central bank will soon announce a third round of quantitative easing. The U.S. is also to release government data on crude oil stockpiles.
Thursday, August 23
The U.S. is to release its weekly government report on initial jobless claims, followed by preliminary data on manufacturing activity and official data on new home sales, a key gauge of economic health.
Friday, August 24
BoJ Governor Masaaki Shirakawa is due to speak; his comments will be closely watched for any indications on the future possible direction of monetary policy.
The U.S. is to round up the week with government data on durable goods orders, a key indicator of manufacturing production.
USD/JPY hit 78.15 on Monday, the weekly low; the pair subsequently consolidated at 79.54 by close of trade on Friday, gaining 1.67% over the week.
The pair is likely to find support at 78.90, Thursday’s low and resistance at 79.94, the high of July 12.
Data on Friday showed that the University of Michigan’s consumer sentiment index for August hit its highest level in three months, coming in at 73.6 from 72.3 in July and outstripping forecasts for a reading of 72.4.
Meanwhile, the Conference Board reported that its index of leading indicators rose more-than-expected in July.
The data came after better-than-expected U.S. retail sales and industrial production data earlier in the week tempered expectations for another round of quantitative easing by the U.S. central bank.
The yen came under pressure earlier in the week after Tuesday’s minutes of the Bank of Japan’s August meeting indicated that policymakers have not ruled out further stimulus measures to bolster growth.
One day earlier, government data showed that Japan’s economy grew 0.3% in the three months to June, just half as much as expectations for a 0.6% expansion, from an upwardly revised 1.2% in the first quarter, as export demand was hit by the ongoing debt crisis in Europe.
The yen fell to a six-week low against the euro on Friday, with EUR/JPY settling at 98.11, up 0.10% on the day.
In the week ahead, market participants will be awaiting Wednesday’s minutes of the Federal Reserve’s August meeting for any indications on the future possible direction of monetary policy. The U.S. is also to release closely watched reports on the housing sector and manufacturing production.
In Japan, BoJ Governor Masaaki Shirakawa is to speak on Friday; his comments will be closely watched.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
The guide skips Monday and Tuesday, as there are no relevant events on these days.
Wednesday, August 22
Japan is to produce government data on the trade balance, the difference in value between imported and exported goods.
Later in the day, the Federal Reserve is to produce the minutes of its August policy meeting, amid growing speculation over whether the U.S. central bank will soon announce a third round of quantitative easing. The U.S. is also to release government data on crude oil stockpiles.
Thursday, August 23
The U.S. is to release its weekly government report on initial jobless claims, followed by preliminary data on manufacturing activity and official data on new home sales, a key gauge of economic health.
Friday, August 24
BoJ Governor Masaaki Shirakawa is due to speak; his comments will be closely watched for any indications on the future possible direction of monetary policy.
The U.S. is to round up the week with government data on durable goods orders, a key indicator of manufacturing production.