Currency trading overnight has been pretty active with yen weakness the main feature. USD/JPY is presently up at 95.70 from a North American close Monday around 94.34, while EUR/JPY is presently at 122.45 from around 119.85. The yen is continuing to lose traction as a safe haven as people increasingly focus in on the parlous state of the Japanese economy and the uncertain political backdop. Interestingly Goldmans ovenight released a piece headlined “Buy USD/JPY: Top 10 reasons.” which will no doubt have played a part in the accelerated yen weakness.
For today from a data/news perspective we have the following:
- 9:00 EST: S&P/CSHPI composite
- 10:00 EST: US consumer confidence (feb) expected to come in a +35.0 from prior 37.7
- 10:00 EST: Fed chairman Bernanke testifies before Senate.
- 10:00 EST: US house price index expected -1/7% m/m and -2.0% q/q.
- 10:00 EST: Richmond Fed index expected to show a -47 read.
