Today's Market View - USDJPY

Despite the initial weakening, during the Asian session the currency pair Dollar/Yen was strengthened under the influence of demand from Japanese importers and Asian hedge funds. Dealers said that speculators who cut down positions on Friday, is now setting new positions before the meeting, FOMC, which will take place on Wednesday. Market participants are unsure about the tone of the final statement of FOMC, dealers do not recommend to trade actively before the declaration. They also inform that at the level of Y107.50-107.60 numerous orders of Japanese exporters to sell are positioned.

Some sources have reported that FRB would leave the US interest rate without changing, but refer to climbing inflationary pressures and no expectation of interest rate rise in the statement on 25 June. US economy seems to go through subprime crisis by financial politics like interest rate cuts, but recent price rises on petroleum and weak financial markets exert bad influence on the economy.

From the view of technical analysis the daily 14-day momentum is still in the positive zone, but has lack of upward impulse. The daily stochastic is now near oversell that shows position correction before the FOMC.



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[b]Economic Calendar[/b]

Time Location [b]Indicator[/b] Period Unit Forecast Previous Actual

[b]Time is CET and that of the Trade Terminal [/b]

09:30 Germany [b]PMI - Services[/b] June 53.2 53.8

09:30 Germany [b]PMI Manufacturing[/b] June 53.2 53.6

10:00 Germany [b]IFO Index[/b] June 102.3 103.5

10:00 Germany [b]IFO Current[/b] June 109 110.1

10:00 Germany [b]IFO Expect[/b] June 96.5 97.3

10:00 Euro Zone [b]PMI - Services[/b] June 50.5 50.6

10:00 Euro Zone [b]PMI Manufacturing[/b] June 50.2 50.6

14:30 United States [b]National Activity Index[/b] May -- -1.17

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