The U.S. dollar was seen extending it’s gains from the previous day. The lack of economic data on the day saw the markets focusing on rumors that the Bank of Japan could be reducing its bond purchases. The Japanese yen strengthened significantly across the board, rising 0.34% on the day. The U.S. dollar was the second best performing currency pair on Tuesday.
Data from the Eurozone showed that the unemployment rate fell to 8.7% as forecast. The unemployment rate was better than the previous month’s 8.8%. However, the common currency continued to extend losses.
Looking ahead, data from the UK stands out with the manufacturing, industrial and construction output data. Overall, output from all the three sectors is expected to show a modest improvement from the previous month. In the U.S. the import price data is expected to show a 0.4% increase, which is slower than the previous month.
