The preliminary US retail sales and University of Michigan consumer sentiment figures will be released, putting the impact of foreign exchange intervention, speculation over future intervention and the market's response to US monetary policy at the forefront. Attention is also focused on movements in major currencies, including dollar-yen and euro-yen.
The focus today is on the preliminary US economic data and the impact of foreign exchange intervention and speculation over further intervention surrounding the figures. The preliminary US retail sales and University of Michigan consumer sentiment figures will be released, and the foreign exchange market's reaction is expected to be watched.
Market participants believe that the US economic data will provide clues to future monetary policy, and it has been suggested that the market may respond sensitively to expectations of interest-rate hikes. Attention is also focused on the effectiveness of foreign exchange intervention and the possibility of further intervention.
The focus will be on dollar-yen and movements in Western currencies against the yen, with growing expectations that the latest US economic data and the outlook for monetary policy will influence the effectiveness of foreign exchange intervention. The market will also be watching weekend-related factors and movements in long-term interest rates.
This article brings these factors together as the day's market drivers. Readers will need to focus on the US data, the possibility of foreign exchange intervention in response, and the outlook for monetary policy.