Wednesday, 23 August 2017

What’s next? – USDJPY 23.08.17

Posted by Valentine at 02:15 Labels:

USDJPY

The dollar/yen was down 0.14 percent as of 08:30 GMT on Tuesday to trade at 109.40, as the greenback lost power in the light of rising political concerns in the United States.

The American currency notched down on the back of larger worries concerning President Donald Trump’s ability to get Congress approval for key campaign reforms, such as the American Health Care Act, which is meant to repeal and replace so-called Obamacare, and a long-awaited tax reform expected to significantly cut corporate and personal taxes.

However, dollar losses were limited as market players opted for a cautious positioning ahead of Federal Reserve’s annual Jackson Hole symposium in Wyoming.

Central bankers from all around the globe are expected to provide guidance on future changes to monetary policy configurations. All eyes will be directed to speeches from ECB President Mario Draghi and Fed Chairwoman Janet Yellen.

At a rally in Phoenix, Trump reassured on Tuesday that the controversial Mexico border wall was going to be built, adding there was a chance he should end the Nafta deal.

The pair is now trading below the previous session high of 109.83, but remains comfortably above a four-month low of 108.605 reached last week.

The US dollar index, which tracks the greenback against a basket of six major rivals, was 14 percent lower at 93.33 by the time of this writing.

If there are no strong changes to the geopolitical situation in the Korean peninsula, the dollar/yen is expected to remain in a tight range until Friday, when Fed Chair Yellen will take the microphone at Jackson Hole.

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