The USD/JPY moved up over the week to close at 110.13 as traders monitored the G7 meeting over the weekend. Investors were closely watching tension
The USD/JPY moved up over the week to close at 110.13 as traders monitored the G7 meeting over the weekend. Investors were closely watching tension between the U.S. and Japan over whether the yen’s strength earlier this year was sharp enough to warrant intervention by authorities.
U.S. Treasury Secretary Jack Lew has said the Japanese currency’s recent appreciation was orderly, despite Japanese authorities’ description of the yen movement as “one sided” and speculator-driven. Japanese Finance Minister Taro Aso has said that he was “prepared to undertake intervention” in the foreign-exchange market.
Despite the dollar’s mixed performance Friday, some analysts said they expect it to gain in the near term. Scotiabank said in a note Friday that the euro should weaken against the dollar “on the basis of relative central bank policy as market participants firm their expectations for Fed normalization.”
John Hardy, head of FX strategy at Saxo Bank, said in a note Friday that the dollar “continues to stand strong on the rising prospects for a Fed move.”
The dollar held at its highest in nearly two months against a basket of major currencies early on Friday, on track for a third week of gains as investors awaken to the risk of a hike in U.S. interest rates as early as next month.
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Major Economic Events for the week:
Cur. | Event | Actual | Forecast | Previous | |||||
Monday, May 23, 2016 | |||||||||
Canada – Victoria Day | |||||||||
Tuesday, May 24, 2016 | |||||||||
USD | New Home Sales (Apr) | 523K | 511K | ||||||
Wednesday, May 25, 2016 | |||||||||
CAD | Interest Rate Decision | 0.50% | 0.50% | ||||||
USD | Crude Oil Inventories | 1.310M | |||||||
Thursday, May 26, 2016 | |||||||||
GBP | GDP (QoQ) (Q1) | 0.4% | 0.4% | ||||||
GBP | GDP (YoY) (Q1) | 2.1% | 2.1% | ||||||
USD | Core Durable Goods Orders (MoM) (Apr) | 0.3% | -0.2% | ||||||
USD | Pending Home Sales (MoM) (Apr) | 0.6% | 1.4% | ||||||
Friday, May 27, 2016 | |||||||||
USD | GDP (QoQ) (Q1) | 0.9% | 0.5% | ||||||
Upcoming Government Bond Auctions
Date Time Country
May 23 N/A UK Syndicated tap of 0.125% I/L 2046 Gilt
May 23 11:03 Sweden Sek 1.25bn 0.125% Jun 2019 I/L bond
May 23 11:30 Germany Eur 1.5bn May 2017 Bubill
May 23 12:00 Norway Details of bond auction on May 25
May 23 17:20 Italy Details of Zero‐coupon/BTP€i auction
May 25 11:03 Sweden Holds bond auction
May 25 11:05 Norway Holds bond auction
May 25 11:30 Germany Eur 1bn 2.5% Jul 2044 Bund
May 26 11:10 Italy Announces details of bond auction
May 26 11:10 Italy Holds Zero‐coupon/BTP€i auction
May 26 17:20 Sweden Details of I/L auction on Jun 02