Dollar/yen continues to be marked by strong volatility. The pair rose 1.17%, erasing almost all of the losses from the previous week. Japan will release GDP for the third quarter. The forecast is for a gain of 4.4%, after a sharp decline in Q2 of -7.8%.
.
USD/JPY fundamental mover
Japan’s economic data was limited to tier-2 releases. Economy Watchers Sentiment, a consumer spending indicator, pushed will into expansion territory, climbing from 49.3 to 54.5. The neutral 50-level separates contraction from expansion.
In the US, consumer inflation softened, as the headline and core readings both fell to 0.0%, down from 0.2% beforehand. There was positive news on the employment front, as unemployment claims fell to 709 thousand, down from 751 thousand in the previous release. The week wrapped up with UoM Consumer Sentiment, which fell from 81.2 to 77.0, its lowest level in three months.
The Japanese yen posted strong gains last week, but it was more of a case of the dollar’s weakness rather than strength from the dollar. The Japanese economy is limping along, and strong numbers from the US could push the dollar higher.
Kenny Fisher - Senior Writer
A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.
Kenny's Google Profile