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US Dollar Continues to Make Headway, Japanese Yen Edges Higher
Monday, 08 June 2009 22:15:44 GMT  |  Terri Belkas, Currency Strategist
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The US dollar and Japanese yen ended Monday mostly higher against the majors, as there was little in the way of fundamental news. For the greenback, the moves marked a continuation of Friday’s post-NFP rally. Meanwhile, the yen’s gains, especially those made against the high-yielding commodity dollars, were linked with price action in the equity markets as the DJIA spent most of the day in negative territory, only to rally at 15:00 ET and end the practically unchanged from Friday at 8764.49.

Looking ahead to Tuesday, US wholesale inventories are forecasted to have contracted for the eighth straight month in April at a rate of -1.2 percent, as businesses cut back on excess supply levels in an attempt to account for weak demand. It will also be important to look at the wholesale sales component, which has been rather volatile in recent months as the index fell 2.4 percent in March but rose by 0.2 percent in February. A continuation of a downtrend in wholesale sales would not bode well for other indicators like durable goods orders and retail sales. That said, this is a very lagging indicator, so the results shouldn’t be incredibly market-moving for the US dollar.

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