US dollar supported by Fisher’s comments

USD/JPY is drifting higher again as it pulls away from 104 and heads towards 104.20.

While economic data out of the US was mixed overnight, the market has given plenty of attention to Fed member Richard Fisher’s comments saying he unsuccessfully pushed for a larger taper of around $20 billion as opposed to the token taper of $10 billion that we received. Fisher will be a voting member next year and he’ll be lobbying for a heftier taper than what we’ve seen so far. However, he dismissed talk that the currently rally in US markets is an asset bubble. While Australia celebrates Christmas Eve, the US will release durable goods orders and new home sales data tonight along with the Richmond manufacturing index. Further positive signs will only lead to more USD strength which would be positive for USD/JPY.

Data dump from Japan this week

There is no rest on the Japan front with the BoJ monthly report today while BoJ Gov Kuroda speaks tomorrow. On Thursday we have Japan’s weekly fund flows data and minutes from last week’s BoJ meeting. Unemployment claims will from the US will still be released on Thursday while Friday brings a data dump from Japan. We will get household spending, CPI, unemployment rate, industrial production, retail sales and average cash earnings due out. Look for USD/JPY to rally back to last week’s highs at 104.64 and for the Nikkei to consolidate its gains above 16,000.

USD/JPY

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by analysts

Find out more about