Source: ForexYard
Following the announcement that the Bank of Japan is initiating a new round of monetary easing last night, the USD/JPY fell slightly more than 40 pips to eventually reach the 84.00 level.
News that US budget negotiations are deadlocked once again caused the euro to remain bearish against the US dollar during Asian trading. The EUR/USD, currently trading at 1.3220, fell close to 50 pips during evening trading yesterday.
Risk aversion due to the US budget impasse caused crude oil to reverse some of its recent gains during the overnight session. The commodity fell some $0.50 a barrel, and is currently trading at $89.55.
Main News for Today
US Unemployment Claims- 13:30 GMT
• Forecasted to come in slightly above last week’s figure
• If true, the dollar could take additional losses against its main currency rivals during mid-day trading
US Existing Home Sales- 15:00 GMT
• Forecasted to come in at 4.88M, which if true, would be a significant improvement over last month’s figure of 4.79M
• A better than expected figure could lead to gains for the dollar and crude oil during afternoon trading
US Philly Fed Manufacturing Index- 15:00 GMT
• Forecasted to come in at -2.2, which if true, would be a significant improvement over last month’s figure of -10.7
• A positive manufacturing figure is likely to boost the dollar during afternoon trading
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