The USD/JPY is struggling to rebound as the rate has found temporary support, the greenback needs a bullish spark to be able to jump higher again. The currency pair has increased a little in the current week after the impressive drop registered on Friday after the Brexit referendum, the USD is fighting hard to recover, but remains to see in the coming hours because the USDX is showing some exhausted signs and could drop again on the short term, the greenback could decrease as well versus its rivals. The Japanese Yen has decreased as the Japanese Retail sales have dropped by 1.9% in May, has reached the lowest level after April 2015 when the retail sales have dropped by 9.7%, the economic indicator has come worse compared to the -1.6% estimate, the Yen could drop much deeper tomorrow if the Prelim Inustrial Production will decrease by 0.1%. Moreover the Housing Starts could increase only by 4.9%, less than the 9.0% in the previous reading period.
The USD needs a helping hand from the US economic data to be able to jump much higher, the United States Personal Spending could increase by 0.4% in May, while the Personal Income could increase by 0.3%, moreover the Core PCE Price Index may increase by 0.2%. Unfortunately the greenback could be punished by the Pending Home Sales data, the economic indicator could decrease by 0.9% in May, could plunge after the 5.1% increase from April, we could have some volatility on the major pair after the US data will be released, so you should be careful because the fundamental factors could drive the prices in the coming hours. Oil price could jump higher again if the United States Crude Oil Inventories will decrease to -2.3 million barrels.
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Excellent post. Thank you very much.
Thanks Wayne, I’m glad that you like my post.