Source: ForexYard
The USD/JPY fell to a record low during the start of the overnight session, as the aftermath of last week’s devastating earthquake and tsunami in Japan continue to generate extreme volatility in the marketplace. The pair dropped over 300 pips in a matter of minutes, reaching as low as 76.40 before bouncing back up to its current rate of 79.45. While several potentially significant US news events are scheduled to be released today, traders are warned that any developments out of Japan are likely to have the highest impact on the market.
Here is a roundup of the day’s main economic indicators:
12:30 GMT-US Core CPI
The Core CPI figure measures the change in price in goods and services, excluding food and energy, over the last month. This is considered a vital gauge of inflation in the US, and tends to have a direct impact on the value of the dollar.
Today’s CPI is forecasted to come in at 0.1%, which if true, would signal a slight drop over last month’s. The USD has been extremely bearish as of late. If today’s figure comes in at 0.1%, the currency is likely to take further losses.
12:30 GMT-US Unemployment Claims
The weekly US Unemployment Claims figure is considered one of the more significant news events on the forex calendar. Analysts are predicting a slight drop in the number of people filing for first time unemployment insurance this week. If the predicted figure of the 388K turns out to be true, the dollar may be able to pull in some short term gains during the afternoon session.
Forex Market Analysis provided by ForexYard.
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