Thursday, 29 June 2017

What’s next? – USDJPY 29.06.17

Posted by Anonymous at 17:09 Labels:

USDJPY

The dollar/yen was 0.42 percent higher at 112.80 as of 01:40 GMT, rising on the back of upbeat economic data from the United States.

A fresh reading on the first-quarter gross domestic product came in at 1.4 percent, outperforming an expected 1.2 percent. This report was widely watched by investors as they try to figure out next steps in terms of monetary policy.

According to Fed funds tracked by CME Group’s FedWatch tool, traders are currently pricing in more than a 47 percent probability of a rate hike in December.

Upbeat data will certainly have a positive impact on expectations for further monetary policy tightening in the world’s first economy.

Earlier this week, Fed Chairwoman Janet Yellen reassured that a gradual normalization process is still on its way and it requires improving economic conditions in order to move forward.

Comments from ECB President Mario Draghi on an eventual adjustment of the bank’s massive stimulus program has also been boosting the USDJPY.

There is no doubt that focus is now on interest rates. The differential between US and Japanese bonds is having strong effects on the pair. Most likely, the dollar will continue to strengthen across the market in the long term.

Ahead in the week, Japan’s Household Spending, Jobs/Applications ratio, Consumer Price Index, Unemployment rate and industrial production will be published.

No comments :

Post a Comment

Subscribe to: Post Comments ( Atom )