The pair is likely to trade in a tight range today in Asia, with investors focusing on developments on U.S. budget talks for implications for the U.S. economy and risk sentiment. John Boehner, speaker of the House of the Representatives, said Thursday to reporters that “no substantive progress” has been made in budget talks, while senator Chuck Schumer said there has been progress. President Barack Obama said on Wednesday that “my hope is to get this done before Christmas.” The Standard & Poor’s 500 Index rose for a second straight day, up xxx% on Thursday, but yields on Treasury’s 10-year notes dropped for four consecutive days, down one basis point at 1.62%. Investors will also watch closely remarks from Japanese policymakers on the yen as they prepare for the Dec. 16 election and political developments in Japan, as well as the release today of Japan’s CPI for implications for the monetary policy and the FX market. Core CPI is forecast to have fallen 0.1% in October, marking a sixth straight fall, according to a MNI survey of economists. The rate moved from Y81.91 to Y82.22 on Thursday.
EasyForexNews Research Team