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Forex - USD/JPY weekly outlook: March 30 - April 3

Published 03/29/2015, 08:03 AM
Updated 03/29/2015, 08:03 AM
© Reuters.  Dollar ends week lower against yen

Investing.com - The dollar ended the week lower against the yen on Friday as lackluster U.S. economic reports, including on economic growth and cautious comments by Federal Reserve Chair Janet Yellen weighed.

USD/JPY was almost unchanged for the day at 119.14 in late trade and ended the week down 0.74%.

Sentiment on the dollar was hit after data on Friday showed that the U.S. economy grew slightly less than forecast in the fourth quarter and another report showing that consumer sentiment deteriorated this month.

The Commerce Department reported that the U.S. economy expanded at an annual rate of 2.2% in the fourth quarter, unchanged from the preliminary estimate and below economists’ forecasts for an upward revision to 2.4%.

Another report showed that the final reading of the University of Michigan’s consumer sentiment index ticked down to 93.0 this month from a final reading of 95.4 in February.

The dollar remained subdued after Fed Chair Janet Yellen struck a cautious note on interest rates. In a speech on Friday, the Fed chief said a rate hike may be warranted later this year, but added that weakening inflation pressures could force the Fed to delay.

The speech echoed the Fed’s latest policy statement, released on March 18, which indicated that it may raise interest rates more gradually than markets had expected.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, ended the week down 0.66%, the second consecutive weekly decline.

In the week ahead, investors will be focusing the U.S. employment report for February, due out on Friday and Monday’s data on personal spending for further indications on the path of monetary policy.

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Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, March 30

Japan is to publish preliminary data on industrial production.

The U.S. is to release reports on personal spending and pending home sales.

Tuesday, March 31

Japan is to report on average cash earnings.

The U.S. is to release data on consumer confidence.

Wednesday, April 1

Japan is to publish the results of the Tankan manufacturing and non-manufacturing indexes.

The U.S. is to release the ADP nonfarm payrolls report, which outlines private sector jobs growth, while the Institute of Supply Management is to release data on manufacturing activity.

Thursday, April 2

The U.S. is to release data on the trade balance, initial jobless claims and factory orders.

Friday, April 3

Markets in Australia, New Zealand, Europe, the U.K., U.S. and Canada will be closed for the Good Friday holiday.

The U.S. is to round up the week with what will be a closely watched government report on non-farm payrolls, the unemployment rate and average earnings.

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