Source: ForexYard
The yen extended its bearish trend during overnight trading last night, amid speculations that the Bank of Japan will initiate new monetary easing steps in the near future. The USD/JPY hit a more than two-year high while the EUR/JPY traded at its highest level since July of 2011.
The euro saw additional upward movement against the US dollar during the Asian session, as hopes that US lawmakers will soon reach an agreement to avoid the “fiscal cliff” of tax increases and budget cuts, boosted risk taking. The EUR/USD is currently trading at 1.3265.
After gaining more than $2 a barrel yesterday, crude oil was able to advance another $0.40 last night, as speculations of an impending “fiscal cliff” deal led to risk taking among investors.
Main News for Today
US Unemployment Claims-13:30 GMT
• Forecasted to come in at 365K, slightly higher than last week
• A higher than expected figure today could lead to the dollar giving up some of its recent gains against the yen
US CB Consumer Confidence- 15:00 GMT
• Forecaster to come in at 70.3, significantly lower than last month’s 73.7
• A worse than expected figure today could weigh down on the dollar
US New Home Sales- 15:00 GMT
• Forecasted to come in at 382K, which would represent a substantial increase over last month’s 368K
• Positive data could help the dollar recoup some of its recent losses against the euro and CHF
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