[ad_1]
The Dollar / Yen exchange slightly lower Monday morning. Traders are responding to firm demand for higher risk badets and slightly higher yields from the US Treasury. Friday, the yen has recovered from a six-month low against the greenback.
At 00:47 GMT, the USD / JPY is trading at 112,429, up 0.080 or + 0.07%.
Last week, the dollar / yen was in reaction to strong data from US producers and consumers who supported the Fed's plan to raise interest rates at least twice more in 2018. US Federal Reserve Chairman Jerome Powell's optimistic comments on the US economy also fueled demand.
Last Thursday, Fed chief Powell said in a market radio interview that the US economy remained in a "good position," with tax and public spending programs likely to to stimulate growth for three years. his semi-annual report on monetary policy before Powell's scheduled testimony to Congress this week on Tuesday and Wednesday. The report showed solid economic growth in the United States and the Fed is expecting to continue to gradually raise rates.
Also Friday, the USD / JPY was weakened after consumer confidence data from the University of Michigan dropped more than expected. This encouraged the Dollar / Yen bulls to post profits after the Forex pair hit a six-month high earlier in the session.
Forecast
Monday, the USD / JPY will continue to be sensitive to US Treasury yields. appetite for risk. The currency pair could continue to rise if tensions rise due to growing concerns over the US-China trade dispute. This is because investors treat the dollar as an badet shelters.
Traders also say that there is a high probability that the US will offer additional tariffs to China after the publication of a record trade surplus in China. This could fuel trade tensions between the United States and China and another series of safe havens for the greenback.
Trading is light early Monday due to a holiday in Japan. At 12:30 GMT, the United States is expected to release reports on basic retail sales, retail sales and the Empire State Manufacturing Index. At 14:00 GMT, look for a report on commercial stocks
Basic retail sales are expected to increase 0.4%, down from 0.9%. Retail sales are estimated at 0.4%, down from 0.8%. The Empire State Manufacturing index is expected to reach 20.3, up from 25.0. Business inventories are expected to rise 0.4%, up from 0.3%.
Stronger than expected retail sales data should support USD / JPY. Japanese yen could pick up if retail sales fall short of expectations
Trade may be light on Monday and Tuesday before Fed Chairman Jerome Powell testifies in front of Congress on Wednesday and Thursday.
Source link
