© Reuters. The dollar is stable during a session calm
Investing.com – The dollar is stable on Monday, after touching a high of eight months against the yen earlier, and in view of the tax reform in the United States.
USD/JPY key 114.73, the highest level since march 15, before retreating to 114.09, at 08:39 AM ET (13:39 AM GMT).
The dollar has been boosted by the diverging prospects for monetary policy in the United States and Japan.
BoJ governor Haruhiko Kuroda said on Monday that it would continue to ease monetary policy, but that the bank was monitoring the economic effects of an extension of the stimuli.
The demand for the dollar continued to be supported by the forecast that the Fed will gradually increase its rate.
A report showed that the goods manufactured in the United States had increased for the second consecutive month in September.
The employment non-agricultural progress of 261.000 in October, compared to the 18,000 last month, after a revision from an initial estimate of 33,000.
These figures come booster the forecasts of a rate hike by the Federal Reserve in the months to come.
The index dollar, which measures the greenback’s strength against a basket of six major currencies, key 94.86, close to a highest of a week reached during the night at 95.00.
The euro declined with the EUR/USD at 1.1596, while the pound changes little with the GBP/USD on the rise of 1.3108.
This week, investors will be focused on the progression of the tax reform, while the week will be relatively quiet in terms of publications macroeconomic.
Investors will also monitor the president’s visit to american Donald Trump in Asia.
Trump says Monday that Washington will work with Tokyo to solve their business problems.
Earlier, Trump promised to enter into a contract for a partnership free and balanced with Japan after decades of “trade deficit” and added that the relations between the two countries were ” better than ever. “