The Asian session on Friday was more subdued as trading tends to be lighter ahead of the weekend. Market focus has turned to the next week’s Federal Reserve policy meeting, with alot of uncertainty surrounding the question whether the Fed will decide to taper this month and if so by how much.
Currently the Fed’s stimulus program involves $85 billion a month of bund purchases, a measure that tends to have a weakening effect on the USD. Hence any move to scale back on this stimulus will make the dollar more favourable.
USDJPY rebounded in the Asian session today, recovering yesterday’s losses and advanced to a session high of 99.96 yen. The pair has touched as low as 99.00 yen yesterday.
EURJPY topped at 132.63 yen, moving off from yesterday’s 131.72.
There was little movement in euro and sterling, with EURUSD edging down to $1.3270 and GBPUSD down to $1.5775.
Looking ahead to the European Session, finance ministers in the euro zone are due to meet to discuss the bailout programmes for Greece and Cyprus. In terms of data, international trade and employment figures for the euro zone will be released.
The U.S. session is busier, with August retail sales data due. Forecasts are for a rise of 0.4 per cent month-on-month expected.Publication source