- Japanese Finance Minister: Weak yen good for economy
- Light data in upcoming London trading session
No data? No problem! Even though there were no major reports released in the past few hours, forex pairs still made a few good moves here and there as traders paid attention to other headlines. By the looks of it, dollar bulls are starting to lick their wounds after the dismal U.S. retail sales release.
More and more financial hotshots are slashing their forecasts for EUR/USD, which explains why the pair hasn’t been able to gain much traction lately. The pair is lingering around the 1.0600 levels so far, down 20 pips or 0.18%. Economists at ANZ predict that the pair could fall to as low as 0.9500 by the end of the year and lowered its forecast for AUD/USD to 0.7200.
AUD/USD turned upon hitting resistance at the .7700 handle and is down 24 pips (-0.33%) while NZD/USD topped out at the .7400 mark and is down 8 pips (-0.10%). Yen pairs are looking a bit more upbeat, with USD/JPY recovering by 20 pips (+0.15%) and GBP/JPY up by 14 pips (+0.07%).
In Japan, Finance Minister Taro Aso reiterated that a weak yen would be good for the economy since it would make the country’s exports more competitive, thereby boosting production and hiring. He highlighted the improvements in Japan, citing that gains in the stock market reflect better confidence in the economy these days.
The forex calendar shows that the upcoming London trading session will also be a data-light one, but that doesn’t mean that currencies would head to Snoozeville from here. BOE MPC member Nemat Shafik is set to give a testimony, which might have some clues on how next week’s release of the BOE minutes might turn out. U.K. data on construction output is also lined up and another weak reading could cast more doubts on Carney’s optimistic outlook, potentially setting off more pound declines.
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