USD/JPY: Dollar Goes Up On Strong U.S. Data

By GrowthAces.com

• The Conference Board said its consumer confidence index rose to 113.7 from an upwardly revised 109.4 in November, the highest since August 2001.
• U.S. house prices also continued their steady recovery in October, although a spike in borrowing costs could present a headwind to sustained home value gains. The S&P CoreLogic Case-Shiller composite index of 20 metropolitan areas rose 5.1% in October on a year-over-year basis, up from a downwardly adjusted 5.0% climb in September.
• The upbeat data helped underscore expectations that the U.S. central bank would raise interest rates more frequently next year, a view that gained traction after the Fed on December 14 projected three rate hikes next year compared with the two it predicted in September.
• Japan’s industrial output rose 1.5% in November from the previous month, preliminary data released by the trade ministry showed, roughly matching a median market forecast for a 1.6% increase. It followed a 0.6% gain in September and a flat reading in October. Manufacturers surveyed by the ministry expect output to increase 2.0% in December and rise 2.2% in January, a sign they are becoming more optimistic on the outlook for overseas demand.
• Separate data released by the government showed retail sales rose 1.7% in November from a year earlier, far exceeding a median market forecast for a 0.6% gain.
• The USD inched up against the JPY on Wednesday after upbeat U.S. economic data. We expect low market activity until the end of the year. The next data to watch is U.S. payrolls due on January 6.

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By GrowthAces.com – Daily Forex Trading Strategies