USD/JPY – Yen strengthens by more than 1% as US expectations wane

on Aug 27, 2013
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**iNVEZZ.com, Tuesday 27 August:**

After yesterday’s worse-than-expected US Durable Goods report, the Citigroup US Economic Surprise Index reversed its recent surge. Economic data has been surpassing forecast for the whole summer led by positive momentum in America. However as the Citigroup US Economic Surprise index approached the projected resistance from 2011, which has previously indicated over-optimistic market expectations, the measure quickly retreated.

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Forex: USD/JPY – Double top being completed Currency Briefing: Week begins on a calm note

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Yesterday the Nikkei 225 was rejected by the bearish channel projected from 18 June and today the Japanese index continued its decline to close at 13,532.37 or 0.69 percent down. The USD/JPY has extended its descent through the European session and ahead of the New York morning bell and is trading around 97.43 or 1.1 percent lower intraday.

In the US, CB’s Consumer Confidence Index for August will be reported at 15.00 BST, with median economists’ forecast for a slowdown to 78.0 after the prior release of 80.3. After the decline from June’s 5-year high and the latest drop in University of Michigan Consumer Sentiment, analysts have a rather pessimistic bias with expectations ranging from 74.8 to 80.0. The latest drop of US Economic Surprise Index supports the negative prejudice of market participants, which are turning more cautious in their fundamental estimates.

At the same time the Richmond Fed Manufacturing index for August will be released. Forecast are for a neutral reading of 0 from the 6-month low of -11.

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Forex: USD/JPY – Double top being completed Currency Briefing: Week begins on a calm note

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