Source: ForexYard
Following several days of losses, the JPY turned bullish during Asian trading last night, after comments from the Japanese economy minister created doubts about how aggressive any future monetary easing from the Bank of Japan will be. The EUR/JPY fell 160 pips, eventually trading as low as 118.27, while the USD/JPY lost 97 pips to reach as low as 88.61.
Comments from Fed Chairman Bernanke yesterday, in which he discussed how fragile the US economic recovery is, boosted demand for gold which led to an increase in prices. The precious metal advanced close to $10 an ounce during Asian trading to reach as high as $1676.47.
Main News for Today
US Retail Sales/Core Retail Sales- 13:30 GMT
• Both indicators are forecasted to come at 0.2%
• If either comes in above their forecasted levels, the dollar could see upward movement during afternoon trading
US PPI- 13:30 GMT
• Forecasted to come in at -0.1% which, if true, would represent a significant increase over last month’s -0.8%
• A better than expected figure could lead to gains for USD and crude oil
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