Forex - USD/JPY rise ahead of Japanese Nov current account data

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Investing.com - USD/JPY rose in the Asian trade on Tuesday ahead of the Japan's Current Account data for November.

The Current Account Index to be released by Japan's Ministry of Finance, is expected to show a deficit of 380 billion yen in comparison to a deficit of 128 billion yen in October for the data due at 0850 local time (2350 GMT).

USD/JPY traded up 0.05% at 103.05, AUD/USD traded down 0.01% at 0.9053, and NZD/USD traded up 0.01% to 83.76.

Meanwhile on Monday the U.S. dollar traded lower against major currencies thought it narrowed its losses as investors avoided the currency after the U.S. December jobs report disappointed and rekindled expectations for the Federal Reserve to take its time dismantling stimulus programs.

The Bureau of Labor Statistics on Friday reported that the U.S. economy added 74,000 jobs in December, well below expectations for a 196,000 increase and below an upwardly revised 241,000 rise the previous month.

The report also showed that the U.S. unemployment rate fell to 6.7% in December due to a weak participation rate, down from 7.0% in November. Analysts had expected the rate to remain unchanged last month.

The numbers weakened the dollar by fueling expectations for the Federal Reserve to trim its USD75 billion monthly bond-buying program at a slower pace than once expected, though by Monday, sentiments grew that overall, the U.S. economy continues to recover and still remains in less need of monetary support.

Investor opinions that the December jobs report may be an anomaly and the product of bad winter weather that put off hiring also cushioned the greenback's declines.

Fed asset purchases tend to weaken the dollar by suppressing long-term interest rates, and expectations for further tapering of such ultra-loose policies tend to strengthen the greenback.

Still, the dollar remained under pressure amid uncertainty ahead of Tuesday's release of U.S. retail sales, with concerns that a disappointing figure just days after a poor jobs report will increase the chances of a more gradual Fed tapering.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.01% at 80.62.

Later in the day, the U.S. is to produce data on retail sales as well as data on import prices and business inventories. Federal Reserve Bank of Philadelphia President Charles Plosser and Dallas Fed President Richard Fisher will also speak today Investing.com
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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