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USD/JPY Forecast: Balancing Consumer Confidence and Intervention Risks
On Tuesday, consumer confidence and machine tool orders may influence buyer appetite for the USD/JPY. An improving consumer confidence environment could signal a pickup in consumer spending. Consumer spending may fuel demand-driven inflation and raise expectations of a Bank of Japan move from zero rates. A higher interest rate environment could raise borrowing costs and reduce disposable income. Downward trends in disposable income could curb spending and dampen demand-driven inflation. Economists forecast the Consumer Confidence Index to increase from 39.1 to 40.0 in March. The survey coincided with the outcome of ... (full story)