The US Dollar climbed against the Japanese Yen, perceived by investors as a safe haven currency, after recording its largest weekly fall in two months. A fall in risk averse investors led some FX traders to cover short positions ahead of this week’s release of key economic data, specifically CPI. A “lull” in aggressive actions from North Korea, which celebrated its 69th anniversary, also helped Dollar sentiment. The Dollar also edged higher against the common currency Euro after another member of the ECB seemed to downplay the negative impact of the strengthening Euro.
As reported at 11:16 am (BST) in London, the USD/JPY was trading at 108.496 Yen, a gain of 0.62%, moving off of the session peak of 108.615 Yen; the session low currently stands at 107.836 Yen. The EUR/USD is trading lower at $1.20, down 0.13%; the pair has ranged from a low of $1.19920 to a peak of $1.20390 in today’s session.
Market Movers in the Week Ahead
In the week ahead, FX traders will be watching the release of data which will include tomorrow’s release of August CPI figures for the UK; analysts are calling for a rise to 2.8% (year-over-year). US Producer Price inflation will be released on Wednesday with the consensus predicting a hike to 0.3% in August, from -0.1% (month-over-month data). Thursday will be a market-moving day with key labor data from Australia, a policy decision from the Bank of England, and CPI numbers from the US, including core CPI. On Friday, retail sales from the US will cap off the week.