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Forex - Japanese yen flat to stronger ahead of busy data set

Published 07/28/2014, 07:04 PM
Updated 07/28/2014, 07:06 PM
Yen steady

Investing.com - The Japanese yen was flat to slightly stronger on Tuesday as investors awaited data and comments from a central bank board member.

A slew of Japanese data releases are due at 0830 Tokyo (2330 GMT) starting with the unemployment rate forecast at 3.5%, unchanged from May, the lowest since 3.5% in December 1997. As well, household spending is forecast at a drop of 3.8% on year in real terms, a third consecutive year-on-year drop after minus 8.0% in May and minus 4.6% in April.

Soon after, Japan's June retail sales data are due at 0850 (2350 GMT). Themedian forecast is for a decline of 0.5% on year, a third straight year-on-year fall.

Later in the session, Bank of Japan board member Koji Ishida is due to speak to business leaders in southwestern Japan from 1030 to 1200 (0130 to 0300 GMT). The BoJ will release his speech at 1030 (0130 GMT) and he holds a news conference from 1400 to 1430 (0500 to 0530 GMT).

USD/JPY traded at 101.85, down 0.01%, while AUD/USD held at 0.9408, up 0.02%.

Overnight, the dollar traded largely lower against most major currencies after a widely-watched home sales report disappointed investors, though many were on the sidelines anyway awaiting the Federal Reserve's July statement on Wednesday and the July jobs report on Friday.

The dollar slid on Monday after the National Association of Realtors reported that U.S. pending home sales fell 1.1% in June, disappointing expectations for a 0.5% gain.

The data sent investors selling the greenback for profits ahead of the Federal Reserve's policy statement on Wednesday and the July jobs report due out on Friday.

Uncertainty as to how much time will pass between rate hikes and a Fed decision to close its bond-buying stimulus program kept many investors waiting on the sidelines until market-moving news hits the wire later this week.

Investors were also awaiting final data on U.S. second-quarter growth on Wednesday.

Geopolitical concerns pressured the greenback lower.

News that the U.S. and Western Europe are planning to slap fresh sanctions on Russia for its alleged intervention in Ukraine by supporting separatists stoked concerns that geopolitical issues will drag on global recovery and prompt the Federal Reserve and other central banks to hold off on tightening policy.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.02% at 81.10.

On Tuesday, the U.S. is to publish reports on house price inflation and consumer confidence.

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