Key data releases in Japan and Australia to be closely watched

The Canadian dollar fell against the pound on Friday in line with its US counterpart. This fall was amplified by a revision of November’s factory output figures from 1% down to 0.5% and a fall in December of 0.9%. This week there is little in the way of Canadian-related data releases until Friday, when Consumer Price Index figures are released. Following a report saying that the Brazilian economy had contracted in December, the real suffered losses against the pound on Friday. These were mitigated by the sale of nearly $200m of foreign exchange swaps, which meant that overall losses against the pound were not as great as they would otherwise have been at the close of business on Friday.

This week there are significant data releases for Japan. With growth figures already released and a Bank of Japan rate decision scheduled for tonight the yen could see significant movement with forecasts predicting positive news for the safe haven currency. Minutes from the Reserve Bank of Australia’s Monetary Policy Meeting will also be made available tonight. Negative sentiment regarding the inflationary outlook for the economy could increase the chances of a rate increase, which would be positive for the Aussie dollar.

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