FXStreet (Guatemala) – Analysts at the Bank of Tokyo-Mitsubishi UFJ, Ltd explained that the key event next week is of course the US employment report which will be crucial in shaping monetary policy expectations in the US.
Key Quotes:
“That comes beyond the period of our ‘week ahead’ analysis but the ADP report on Wednesday will certainly help shape expectations for Friday.”
“While the 125.00 level was breached earlier this month, it is likely to act as a pretty stiff resistance level on any good news related to the employment report from the US. Similarly, downside support looks quite solid around the 122.00 level if the US data was to disappoint.”
“Next week will also include some important data from Japan with cash earnings data on Tuesday and the Tankan report from the Bank of Japan on Wednesday. Other business confidence reading globally have started to drift higher so perhaps there is some upside risk to the unchanged consensus of 12.”
“The weekly flow data from Japan has also shown heavy selling of foreign bonds by Japanese investors and increased appetite for foreign securities is perhaps required before we can expect any renewed jump higher.”
(Market News Provided by FXstreet)