Investing.com - The dollar was higher against the yen on Friday,
after falling sharply in the previous two sessions after Federal
Reserve Chairman Ben Bernanke indicated that the bank may not be as
close to tapering its asset purchase program as previously
USD/JPY fell to lows of 98.25 on Thursday; the lowest since June
27, before recovering to close at 99.22 on Friday, up 0.28% for the
day, paring the week's losses to 1.68%.
The pair is likely to find support at 98.25, Thursday's low and
resistance at 101.20, the high of July 10.
The dollar fell sharply on Wednesday after Bernanke said the Fed
will continue to maintain accommodative monetary policy for the
foreseeable future, citing low levels of inflation and the high
Bernanke said the bank will not raise interest rates until the U.S.
unemployment rate hits 6.5%.
The comments came after the minutes of the central bank's June
policy meeting showed that Fed policymakers remain divided over
when to begin tapering its USD85 billion-a-month asset purchase
Around half of Fed policymakers believe the bank should start to
scale back bond purchases by the end of the year, while many others
believe the labor market still remains too weak.
The yen was boosted after the Bank of Japan left monetary policy on
hold following its policy setting meeting on Thursday, in a widely
The BoJ also upgraded its assessment of the economy, saying it is
starting to moderately recover.
Data on Friday showed that U.S. consumer sentiment ticked lower in
July, with the University of Michigan's consumer sentiment index
slipping to 83.9 from 84.1 in June, compared to expectations for a
reading of 85.0.
Meanwhile, Philadelphia Fed President Charles Plosser said Friday
the U.S. central bank should wind down its monetary stimulus
program by the end of this year. Elsewhere, St. Louis Fed President
James Bullard said the bank should not start tapering asset
purchases if inflation remains weak.
In the week ahead, investors will be looking ahead to U.S. data on
retail sales, consumer inflation and housing sector activity.
Meanwhile, markets in Japan are to remain closed on Monday.
Ahead of the coming week, Investing.com has compiled a list of
these and other significant events likely to affect the markets.
The guide skips Friday as there are no relevant events on this day.
Monday, July 15
Markets in Japan are to remain closed for a national holiday.
The U.S. is to produce official data on retail sales, the
government measure of consumer spending, which accounts for the
majority of overall economic activity. The U.S. is also to publish
the Empire state manufacturing index and a report on business
Tuesday, July 16
The U.S. is to release official data on consumer price inflation,
industrial production and the capacity utilization rate.
Wednesday, July 17
The BoJ is to release the minutes of its latest policy meeting,
which contain valuable insights into economic conditions from the
The U.S. is to release official data on building permits, a leading
indicator of future construction sector activity, as well as data
on housing starts. The Federal Reserve is to release its Beige
Thursday, July 18
The U.S. is to release the weekly government report on initial
jobless claims and the Philly Fed manufacturing index.
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