Yen hits seven-week low against dollar as pound struggles ahead of UK inflation report release

<p>In the Asian session the main mover has been the yen, which has weakened as Japan’s tertiary industry index fell. The yen hit a seven-week […]</p>

In the Asian session the main mover has been the yen, which has weakened as Japan’s tertiary industry index fell. The yen hit a seven-week low on the widest yield gap since 2011.

The taper question is building momentum as well. With last week’s impressive data from the US and Yellen due to speak on Thursday, maybe we can get some hints on the previous dove’s actions in the coming months. Still most predictions are building up for a March taper, but some forecasts are still calling for tapering possible from December to February.

AUD dropped to a six-week low on the back of Australian business confidence fading from its highs in October.

The pound is still struggling to gain any momentum in the build-up to the inflation data release, even with a surge in home prices  to an 11-year high.

Today’s only focus is on the inflation data and the market is expecting a dip from 2.7% to 2.5%. This data will be all-important as it will directly affect the inflation report due out tomorrow from BoE’s Carney, who has the difficult task of keeping rates low while the recovery is stronger than expected so far.

 


EUR/USD

Supports 1.3375 1.3345 1.3295 | Resistance 1.3420 1.3450 1.3500

 


USD/JPY

Supports 99.25 98.90 98.20 | Resistance 99.75 100.00 100.60

 


GBP/USD

Supports 1.5950 1.5890 1.5850 | Resistance 1.6000 1.6030 1.6070

 

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