The Japanese Yen weakened against the United States dollar after the release of positive U.S. economic reports and as markets awaited the Federal Reserve’s highly-anticipated policy decision on Wednesday.
The U.S. Commerce Department reported that consumer prices were unchanged from a month earlier, meeting expectations and following a gain of 0.2% in October.
Year-over-year, consumer prices were 0.5% higher from the same month a year earlier, compared to expectations for a 0.4% increase and after rising 0.2% in October.
Core CPI, which excludes food and energy costs, increased by 0.2%, meeting expectations.
Separately, the Federal Reserve Bank of New York said that its general business conditions index improved to -4.6 this month from a reading of -10.7 in November. Analysts had expected the index to rise to -6.0 in December.
Market participants awaited the Federal Reserve’s highly-anticipated policy decision due on Wednesday. Most investors expect the Fed to raise interest rates for the first time since June 2006.
Intra-day bias remains on the upside as 21 EMA crosses the 55 EMA northward. Also SSRC oscillator is signalling more bullish momentum in the pair. Am expecting further rise to 122.21 resistance and a break of it will see more rise to 122.77 weekly resistance in the medium term picture.
Later today investors around the world would be monitoring the USD Interest rate.