Week March 23 to 27 in Focus for USD/JPY
The U.S. dollar struggled against the Japanese yen on Friday, and the forex market climate brightened due to new expectations formed by the positive outcome of Greece debt resolution. The Bank of Japan improved the Japanese yen deduced from the last BOJ’s policy meeting.
The US Dollar dropped against the Japanese Yen to $120.96, falling 0.1 percent – accumulating a weekly loss of 0.6 percent, the lowest value for over two months now.
The sudden decline in the US dollar within the past week occurred because of the decline in the pace of interest rate increase, hence traders were reluctant to bet as much for the dollar, since they were not sure the Feds will hike rates in June as expected, due to the report received by Wednesday that week from the US Federal Reserve.
United States dollar index that calculated its strength against a group of six main currencies, reduced at the end of the week to 2.53 percent, which was its biggest decline for about three and a half years now.
However, investors still think that the US dollar drop is just for a while and it is a much needed relaxation for the greenback since it has been upbeat for about half a year now.
The Bank of Japan (BOJ) at the end of October 2014 enlarged its stimulus program in the midst of the fears that declining oil cost can reduce inflation.
The Euro has a total reduction rate of 10 percent when compared to the US dollar throughout this 2015. This effect is expected to progress because the European Central Bank’s continuing quantitative easing program worth trillions that started at the beginning of March.
At this point the new week March 23 to March 27, will be brought into focus, identifying the important events in the different nations concerned that will affect the trading of the USD/JPY pair.
On Monday the 23rd of March, investors will be focused on the report of housing sales that the United States will publish on this day. No important data report from Japan today.
On Tuesday the 24th of March, investors will be concerned about consumer price inflation data that will be published by the United States. No important data report from Japan today.
On Wednesday the 25th of March, forex investors will be eyeing the orders of durable goods report to be released by the United States. No important data report from Japan today.
On Thursday the 26th of March, there will be no significant information released by the United States or Japan on this day.
Finally on Friday the 27th of March, all eyes will be on Japan on this day, since it is expected to provide a series of report concerning its retail sales, jobless rate, household spending, and inflation. Then, United States will publish the revised consumer index from the University of Michigan, along with the economic growth report for the final quarter of last year.