Thursday, 13 July 2017
What’s next? – USDJPY 13.07.17
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what’s next
USDJPY
The dollar/yen was 0.14 percent lower as of 06:25 GMT on Thursday to trade at 113.00, following careful remarks from Fed Chair Janet Yellen and as the greenback eases ahead of key inflation data later in the week.
The US dollar index, which gauges the greenback against a basket of six major currencies, was down 0.22 percent to 95.31 by the time of this writing.
On Wednesday, Fed Chairwoman Janet Yellen testified before the House Financial Services Committee on monetary policy, among other topics.
She said the economy is doing well and that the monetary normalization process remains on track, but explained that it’s too early to understand whether inflation will meet the regulator’s two percent target. For such reason, she said the Fed won’t be tight to any specific schedule.
Earlier in the Asian session, China’s trade surplus expanded to $42.77 billion from a prior $40.81 billion. Exports and imports came in above expectations, showing an 11.3 and 17.2 percent increase respectively.
Ahead in the day, traders will again be hearing Yellen words as of 14:00 GMT. On the data front, initial jobless claims and the producer price index are set for release at 12:30 GMT.
The dollar is also under pressure due to an ongoing political turmoil over the Trump administration and potential links with the Kremlin. Investors fear the investigation of this relation could weigh on the ability of Trump to push its economic agenda in Congress.
If the pair breaks below the 113 mark, it will look to the 112 level as next target, possibly gaining downside momentum in the short term. However, on the long run, bets remain for the bullish side and the resistance at 115 seems a reasonable target.
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