ForexPros Daily News October 12, 2010
Forex – USD/JPY resumes slide as Japan poised for intervention
Forex Pros – The U.S. dollar was down against the yen on Tuesday, re-approaching Friday’s 15-year low, as Japanese authorities indicated that they were poised to take “bold” action if the yen continued to strengthen.
USD/JPY hit 81.81 during European morning trade, a fresh daily low; the pair subsequently consolidated at 81.95, shedding 0.13%.
The pair was likely to find support at 81.38, Friday’s low and a 15-year low and resistance at 83.02, the high of October 7.
Earlier in the day, Japanese Finance Minister Yoshihiko Noda said his government “will watch currencies with great interest and will take bold action, which includes intervention, if needed.”
The message was reiterated by Economy Minister Banri Kaieda who said that an abrupt strengthening of the yen could hurt the nation’s recovery and that there was no change in the government’s stance to take decisive measures when necessary.
The yen was also up against the euro, with EUR/JPY falling 0.64% to hit 113.14.
Also Tuesday, official data showed that Japanese consumer confidence fell unexpectedly in September, down for the third consecutive month.
Forex – GBP/USD edges lower ahead of key U.K. inflation data
Forex Pros – The pound edged lower against the U.S. dollar on Tuesday, falling to hit a 2-day low, ahead of the release of a key report on U.K. consumer prices.
GBP/USD hit 1.5859 during early European trade, the pair’s lowest since October 8; the pair subsequently consolidated at 1.5874, shedding 0.07%.
Cable was likely to find support at 1.5751, the low of October 5 and resistance at 1.5964, the high of October 8.
Late Monday, industry data from the British Retail Consortium said that retail sales rose at an annualized rate of 0.5% in September, after rising by 1.0% in August.
Also Monday, the Royal Institution of Chartered Surveyors said that house prices in the U.K. fell more-than-expected in September as oversupply in the British property market continued to act as a drag on prices.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.32% to hit 0.8710.
Later in the day, the U.K. was to publish official data on consumer price inflation. This is considered the U.K.’s most important inflation data because it’s used as the central bank’s inflation target.
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