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20 May 2013
Flash: Could further yen weakness be harmful for Japanese living costs? – Deutsche Bank
FXstreet.com (Barcelona) - Bernanke's congressional testimony before the Joint Economic Committee this Wednesday will be the highlight in a week where we may learn more about the Fed's intentions with regards to potential QE tapering.
Indeed, Bernanke's speech will be made on the same day as the Fed publishes minutes from its Apr30th/May1st policy meeting which may shed some further light on the FOMC's deliberations with respect to asset purchases. In advance of Wednesday, Chicago Fed president Evans will be speaking today, followed by the NY Fed's Dudley and St Louis Fed's Bullard who will speak on Tuesday - all are voting members of the FOMC this year.
In addition, the Japanese yen is also in focus overnight after trading below the 102 mark during the Asian session. According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “The move followed comments from Japan's economy minister Mr Amari who said over the weekend that the yen's excessive strength has been largely corrected and that further weakness could be harmful in terms of living costs”. The USD/JPY has pared initial losses, but is now trading lower Monday.
Indeed, Bernanke's speech will be made on the same day as the Fed publishes minutes from its Apr30th/May1st policy meeting which may shed some further light on the FOMC's deliberations with respect to asset purchases. In advance of Wednesday, Chicago Fed president Evans will be speaking today, followed by the NY Fed's Dudley and St Louis Fed's Bullard who will speak on Tuesday - all are voting members of the FOMC this year.
In addition, the Japanese yen is also in focus overnight after trading below the 102 mark during the Asian session. According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “The move followed comments from Japan's economy minister Mr Amari who said over the weekend that the yen's excessive strength has been largely corrected and that further weakness could be harmful in terms of living costs”. The USD/JPY has pared initial losses, but is now trading lower Monday.