Yen Unchanged USD/JPY continues to hug the 114 line in the Wednesday session. On the release front, the US releases JOLTS Job Openings, with the indicator expected to rise to 5.53 million. Japan will publish Current Account and Final GDP, with both indicators expected to improve. On Thursday, the US releases unemployment claims, with the indicator expected to rise to 272 thousand.
In Japan, consumer indicators started the week on a sour note, as Consumer Confidence dropped to 40.9, marking its lowest level since May. Last week, consumer spending indicators disappointed, as Household Spending and Retail Sales both posted declines. The Japanese yen is down sharply in November, dropping 8.0% against the strong US dollar. The greenback has enjoyed broad gains since the election of Donald Trump and the expected rate hike by the Federal Reserve this month has bolstered the dollar. However, the markets are expecting positive news from Japanese indicators on Wednesday. The current account surplus is expected to increase and the estimate for Final GDP stands at 0.6% for the third quarter.
The Federal Reserve will meet next week and the markets have priced a rate hike at 95 percent, most likely a quarter-point increase. This would mark the first hike by the Fed since last December, and sentiment towards the US dollar remains high.
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