As this week begins, the Yen continues to strengthen against all the major currencies. In addition to the Yen’s bullishness, it appears that the elections in Japan, in which the Democratic Party of Japan won, have also supported the JPY, and it continues to be the most profitable currency.
Daily Forex Tips
Another developing trend is the recovery of Crude Oil. Since the Dollar began dropping against the EUR, oil has risen further and further. Currently traded around $72.50 a barrel, if the Dollar will continue to drop, crude oil could reach $75 a barrel this week.
Today’s main events:
Euro-Zone Consumer Price Index (CPI) Flash Estimate (09:00 GMT) – This report measure the change in the price of goods and services purchased by consumers during August. Current expectations are for a 0.4% drop. If the actual result will be similar, the Euro is likely to depreciate as a result.
Canadian Gross Domestic Product (12:30 GMT) – This is the broadest measure of economic health, and thus tends to have a large impact over the local currency. Positive data is likely to boost the CAD.
Chicago Purchasing Managers’ Index (13:45 GMT) – This is the main publication from the U.S economy today. It’s a survey of purchasing managers in Chicago, who are asked to rate their business conditions. Past experience shows that this report usually has a large impact on the Dollar. If the actual result will be above 50.0, it might have the potential to push the Dollar back up.
