USD/JPY stages a comeback. What the market is watching

<p>The US dollar has battled back today as better economic data pushes back against the idea the economy is rapidly slowing. USD/JPY is still lower on the day — down 20 pips — but has rebounded to 146.05 from 145.64. It's part of a broader bid in the US dollar since the PCE report today and other data showed a resilient economy.</p><p>In the bigger picture, the market is volatile at the moment as it struggles to get a grasp on the health of the US economy. Data earlier this week was soft and weighed heavily on USD. Today, Dollar General reported this on the economy:</p><blockquote>"The macroeconomic environment is more challenging than the Company had previously anticipated, which the Company believes is having a significant impact on customers’ spending levels and behaviors"</blockquote><p>The company warned that there have been negative comp sales in June, July and continuing into the first two weeks of August. They expect a continuation in that trend through year end.</p>

This article was written by Adam Button at www.forexlive.com.