Credit: Investing.com -
Investing.com - The U.S. dollar ended the week lower against the yen on Friday as signs that U.S. rates will remain on hold for longer and renewed concerns over the European banking sector bolstered demand for the safe haven Japanese currency.
USD/JPY was at 101.34 late Friday, almost unchanged for the day, holding above Thursday's almost two-month lows of 101.05. For the week, the pair dropped 0.75%.
The pair is likely to find support around the 100.00 level and resistance at 101.65, Thursday's high.
The dollar touched a two-month trough against the yen on Thursday as concerns over the fiscal stability of Portugal's largest lender Banco Espirito Santo fuelled a sharp selloff in markets, amid fears over the risk of contagion.
Concerns eased after Portugal's central bank said Friday it was satisfied that the bank is able to fulfill its capital requirements.
The dollar remained under pressure after the minutes of the Federal Reserve's latest meeting indicated that interest rates are unlikely to rise soon.
Wednesday's minutes of the central bank's June meeting showed that officials agreed to end the bank's asset purchase program in October, but revealed little new information on when rates could start to increase. Officials said policy depends most "on the evolution of the economic outlook."
Elsewhere, EUR/JPY was at 137.90 late Friday, holding above Thursday's five month lows of 137.48. For the week, the pair was down 0.62%.
In the week ahead, investors will be watching testimony on monetary policy by Federal Reserve Chair Janet Yellen. Tuesday's monetary policy announcements by the Bank of Japan will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Monday as there are no relevant events on this day.
Tuesday, July 15
The BoJ is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision. The bank will hold a press conference following the announcement.
The U.S. is to release data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity. The U.S. is also to release data on import prices, business inventories and manufacturing activity in the Empire state.
Wednesday, July 16
The U.S. is to release reports on producer price inflation and industrial production. Meanwhile, Fed Chair Janet Yellen Carney is to testify on monetary policy to the House financial committee.
Thursday, July 17
The U.S. to publish reports on initial jobless claims, housing starts, building permits, and the Philly Fed manufacturing index.
Friday, July 18
The BoJ is to publish monetary policy meeting minutes, which contain valuable insights into economic conditions from the bank's perspective.
The U.S. is to round up the week with preliminary data from the University of Michigan on consumer sentiment.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
