USD/JPY remains depressed near weekly low, below 141.00 mark as traders await FOMC – by hareshmenghani USDJPY Fed InterestRate BOJ Currencies
sday. Spot prices remain on the defensive through the early European session and currently trade around the 140.70 area, just a few pips above the weekly low touched in the last hour.
The US Dollar extends the overnight modest pullback from a two-week low and drifts lower for the second straight day, which, in turn, is seen as a key factor exerting some pressure on the USD/JPY pair. The Japanese Yen , on the other hand, gets a minor lift after the Cabinet Office, in the monthly report, raised its view on business sentiment in July for the first time in seven months. Adding to this, Japan retained its assessment of the economy as recovering at a moderate pace.
The International Monetary Fund , meanwhile, warned of higher inflation from Japan and urged the Bank of Japan to exit its easy-money policy. The BoJ Governor Kazuo, however, reiterated on Wednesday that the central bank will stick to its accommodative monetary stance and added that the long-term yield rate remains stable under the yield curve control policy. This, along with the risk-on mood, should cap the safe-haven JPY and lend support to the USD/JPY pair.
Traders might also refrain from placing aggressive bets and prefer to wait for the outcome of the crucial FOMC policy meeting, scheduled to be announced later this Wednesday. The Federal Reserve is expected to hike interest rates by 25 bps, though investors remain sceptic if the US central bank will pivot to a more dovish stance in the wake of an extremely resilient economy. Hence, the focus will remain on the accompanying policy statement and Fed Chair Jerome Powell's presser.
Investors will look for cues about the future rate-hike path, which, in turn, will play a key role in influencing the USD price dynamics and provide some meaningful impetus to the. The market attention will then shift to the two-day BoJ monetary policy meeting starting on Thursday. Nevertheless, the aforementioned fundamental backdrop warrants some caution before confirming that the recent goodish rebound from a nearly two-month low has run out of steam.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USD/JPY holds below the 141.00 mark ahead of FOMC decisionThe USD/JPY pair drops below the 141.00 area after retreating from weekly highs of 141.81 ahead of the Federal Reserve (Fed) meeting. A 25 basis point
Read more »
USD/JPY Price Analysis: Subdued around 141.00 amidst technical indicators turning bearishUSD/JPY Price Analysis: Subdued around 141.00 amidst technical indicators turning bearish – by christianborjon USDJPY Currencies Majors Technical Analysis
Read more »
2 drivers arrested for racing on U.S. 59 in Humble, police sayPolice say in-car radar captured the racing vehicles' speeds reaching 141 mph.
Read more »
USD/JPY Price Analysis: Drops back towards 140.80 support confluence amid firmer sentiment in AsiaUSD/JPY Price Analysis: Drops back towards 140.80 support confluence amid firmer sentiment in Asia – by anilpanchal7 USDJPY Technical Analysis ChartPatterns SwingTrading RiskAversion
Read more »
USD/JPY could trundle slightly higher on a non-event BoJ meeting – CoGenKit Juckes, Chief Global FX Strategist, analyzes JPY outlook ahead of the BoJ meeting. All about yields as the BoJ sits on its hands Friday’s BoJ meet
Read more »