Source: ForexYard
The dollar came within reach of a four-month high against the Japanese yen in overnight trading, fully recovering from the losses it took after Tuesday’s announcement that the Bank of Japan was initiating a new round of monetary easing. After trading as high as 80.11, the USD/JPY saw a minor downward correction to its current level of 79.99.
Fears among investors regarding Greece’s ability to institute new austerity measures required to secure the next round of a bailout package, caused the euro to take some losses in early morning trading. The EUR/USD fell close to 50 pips to trade as low as 1.2925 before bouncing back to its current level of 1.2945.
Commodities and precious metals spent most of the overnight session range trading, as investors remain hesitant to open new positions before tomorrow’s all-important US Non-Farm Payrolls figure is released.
Main News for Today
US ADP Non-Farm Employment Change-12:15 GMT
• The indicator is considered a valid predictor of tomorrow’s all-important Non-Farm Payrolls figure
• Any better than expected news could give the US dollar an extra boost against the JPY
US CB Consumer Confidence- 14:00 GMT
• This indicator was originally supposed to be released on Tuesday, but was postponed due to Hurricane Sandy
• Consumer confidence is forecasted to have increased to 72.4 from 70.3 last month
• Any better than expected data could boost riskier assets during the afternoon session
US ISM Manufacturing PMI- 14:00 GMT
• The indicator is forecasted to come in slightly below last month’s figure
• Worse than expected news could boost the safe-haven yen
US Crude Oil Inventories- 15:00 GMT
• This indicator was postponed from yesterday due to Hurricane Sandy
• Should the news come in above the forecasted 1.9M, the price of oil could fall during afternoon trading
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