Chart: WorldWideMarkets Alpha Trader
The yen made small gains against the dollar and the euro in Europe. Dollar-yen fell 38 pips from 102.45 to 102.07 while euro-yen fell 40 pips from 139.60 to 139.20 from both profit-taking of long positions and as from safe-haven buying of the yen after the weaker than expected industrial production from France and Italy. The French industrial production in December was -0.3% versus the -0.1% median forecast compared to a revised +1.2% in November. Italy’s industrial production fell -0.9% in December from +0.3% in November. The next market focus will be Janet Yellen’s testimony to Congress tomorrow after a second month of softer jobs growth in the U.S. The new Fed Chief has been a long time supporter of ultra loose monetary policy and may likely continue the Fed’s tapering process until the end of the year, despite the softer jobs data. The 14-day moving average fell from 102.40 to the 102.13 level where both the 7day and 14 day average shows a momentary support. Trading has otherwise been rangebound.