Better than expected US pending home sales data saw the DXY remain elevated and it managed to print a high of 83.17. The move north in the USD underpinned USD/JPY as it rose to highs in the 98.50 region ahead of the data dump today.
Data released from Japan this morning was mixed, but mostly painted a positive picture on the progress the economy has made. Industrial production and retail sales both came in well ahead of consensus, while CPI was relatively in-line with expectations. However, household spending and the unemployment rate slightly disappointed, but this didn’t dent confidence at all. USD/JPY has advanced following the data, printing a high of 98.70. The pair looks like it could head towards ¥100 in the near term.
EUR/USD is just holding on to the 1.30 handle, while AUD/USD found sellers in the 0.932 region and is back at around 0.928. We feel risk currencies would have rallied overnight if it wasn’t for the fact that the Shanghai Composite faded yesterday and finished what was looking like a very positive session weaker yesterday. The single currency will be in focus later today with German retail sales, CPI, French consumer spending and day two of the EU Economic Summit. Over in the US we have Chicago PMI, consumer sentiment and inflation expectations. Fed member Stein will also be in the wires today and will cap off what has been a busy week of Fed speak.