- The Japanese yen has lost significant amount of ground on the US Dollar – almost 50% on the dollar – in the last three years. Taro Aso, head the Ministry of Finance, said that an increase in sales tax for Japan will be happening as planned. The logic being behind this is that the economy is very unlikely to further worsen in the next year. Looking forward to this week, we have consumer confidence data out of Japan, which is unlikely to do much better, with the previous figure coming in at 39.9.
- The Canadian dollar had a great end to the week on Friday as unemployment data came out better than expected at 6.5%, when it was forecast at 6.8%. We saw the dollar strengthen from 1.8110 to 1.7940 in a matter of minutes against sterling as a whole raft of impressive data was released, including the net jobs figure at 43,100 in comparison to the forecast that it would lose 5,000 jobs. Next week should be a fairly quiet week for the Canadian dollar, with the New Housing Index out on Thursday the only data release of note.
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