The Japanese yen fell 0.56% to 98.46 yen against the US dollar on Monday, as it continues to fall before the data that is likely to indicate that the US goods and housing market are recovering.
The Japanese yen was seen at a low 0.46% at 151.60 yen against the British sterling, while yen was buying at a low 0.45% at 129.02 yen versus the single European currency. The U.S. dollar rose 0.1 percent to $1.3106 against the euro, with a four day gain after touching $1, 3087. The Dollar index gained 0.3% to 82.586 and reached 82.692 earlier, while the Ifo Business Climate Index data is expected to show improvement from 105.7 in May, to 105.9 in June.
According to the median forecast, the S&P 500 of home values increased 10.6 percent for the year ended April after a 10.9% high in March.
Comments from the Federal Reserve‘s (Fed) Chairman Mr. Bernanke regarding the possible cutoff of its Fed’s quantitative easing program directed the US currency to maintain its rally. Mr. Bernanke said the US central bank could proceed with tapering the $85 billion monthly bond-buying program later this year, if the US economy shows an improvement.
The Federal Open Market Committee (FOMC) currently decided to continue with the asset purchases, the FOMC statement revealed on Wednesday.
Investors are looking forward to Dallas Fed Richard Fisher’s speech on monetary policy in London to be held on Monday. The Department of Commerce (DoC) will publish data on Tuesday, which will show an increase of 3% in durable goods and the home value figures ,which have risen because of the inventory level and high demand boosted by low mortgage rates .
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Article provided by HY Markets Forex Blog
