USD/JPY rebounds from two-and-a-half month low

The US dollar fluctuated higher in a narrow range during the Asian session to rebound for the third session from its lowest since last February against the Japanese yen, following developments and economic data by the Japanese economy, the third largest economy in the world and on the threshold of an economic data release expected Wednesday By the US economy, the world's largest economy.

As of 06:02 GMT, USD/JPY rose 0.06% at 109.68 from the opening level of 109.61, after reaching a high of 109.69 and a low of 109.52.

We followed the Bank of Japan's release of the annual reading of the M2 lending index, which showed that growth accelerated to 2.6% from 2.4% in March, in contrast to expectations of a 2.3%, to the reading of the Machine Tool Orders index, which showed a decline to 33.4% versus 28.5% in March.

On the other hand, investors are currently waiting for the US economy to reveal the reading of retail sales, which account for about half of consumer spending, which accounts for more than two-thirds of the US GDP, which may reflect a slowdown in growth to 0.2% from 1.6% in March. While the core reading of the same index may show a slowdown in growth to 0.7% from 1.2% in March.

This comes in conjunction with the release of the New York Industrial Index reading, which may reflect the contraction of breadth to 8.2 against 10.1 last April, and before we also witness the release of the Industrial Production Index by the largest industrial country in the world, which may show a stability at zero levels versus a 0.1% in March, while the Energy Utilization Index (EUI) reading may show a slowdown in growth to 78.7% versus 78.8% in March.

To Federal Reserve Vice Chair, Randal Quarles' testimony about the Senate Banking Committee oversight and regulation, ahead of the housing index reading by the National Association of Home Builders, which may reflect a widening to 64 versus 63 in April. In conjunction with the release of the wholesale inventories reading, which may show stability at zero levels versus 0.3% in February.