The Yen continued to drop against most of the major currencies during last week. The Yen saw a relatively peaceful session against the Dollar, yet it underwent a bearish trend vs. the Euro and the Pound.
Several economic publications from the Japanese economy have contributed to the Yen's weakness during last week's trading session. The Final Gross Domestic Product showed that value of all goods and services produced by the economy during the first quarter rose by merely 0.9%, failing to reach expectations for a 1.0% rise. In addition, the Core Machinery Orders, which measures the value of new private-sector purchase orders placed with manufacturers for machines, has dropped by 3.7% during January. Currently it seems that until a series of positive data will be published from the Japanese economy, the Yen might continue tumbling.
As for this week, the most interesting publication from the Japanese economy looks to be the Overnight Call Rate, which is in fact the Japanese interest rates announcement for the next month. Japan currently holds the lowest rates within the industrial world, and analysts have forecasted that the Bank of Japan (BoJ) is likely to leave rates at their current low levels. However, if the BoJ will surprise and hike rates, this is likely to boost the Yen.