Dec. 28: Asian session
USD/JPY rose to 28-month high at 86.63 as data showed a decline in Japanese consumer prices (Tokyo core CPI fell by 0.6% this month, national core CPI dropped by 0.1% in November after staying unchanged in October). The expectations of more easing from the central bank strengthened.
EUR/USD is consolidating at $1.3240. The pair is trading close to the highest levels since April. France will publish consumer spending data at 7:45 GMT. Italy holds a 10-year bond auction.
AUD/USD is consolidating in $1.0390/45 area. NZD/USD is fluctuating in the $0.8200 zone. USD/CHF is trading sideways in the 0.9170/9090 region. GBP/USD rebounded to $1.6120 after having tested the 50-day MA yesterday. USD/CAD is consolidating around 0.9950. Yesterday the pair approached the 200-day MA, but failed to overcome it.
US President Barack Obama and Vice President Joe Biden will meet congressional leaders from both parties at the White House today. US House Republican leaders announced that the chamber will meet on Dec. 30 – its first Sunday session in more than 2 years. American lawmakers are seeking to resolve their impasse over spending cuts and tax increases worth more than $600 billion (“fiscal cliff”).