Friday, 8 September 2017

What’s next? – USDJPY 08.09.17

Posted by Valentine at 02:50 Labels:

USDJPY

The dollar/yen was down 0.64 percent as of 08:20 GMT on Friday to trade at 107.73, as the US dollar continued to edge lower in the light of tightest chances of a third rate hike later this year and as geopolitical tensions weighed on sentiment.

The American currency extended losses in the previous session after the US Labor Department said initial jobless claims rose more than expected to 298,000 last week.

Labor market conditions and inflation are two essential aspects of the economy that the Federal Reserve constantly monitors in order to decide future monetary adjustments.

The US dollar index, which gauges the greenback against a basket of six major rivals, was down 0.45% at 91.23 by the time of this writing, near its lowest mark since 2015.

The greenback was also under pressure due to increasing geopolitical tension in the Korean peninsula. On September 9, the communist nation will celebrate its founding anniversary, which is seen by experts as an opportunity to show off power with a new missile test.

Earlier this week, President Donald Trump assured that military action against North Korea was not his first choice to counteract the threats, but recognized that all alternatives are on the table.

Also, three hurricanes are moving closer to US continental territory while the oil refinery sector is only recovering from tropical storm Harvey.

Ahead in the day, investors will closely monitor a speech from FOMC member Harker as of 12:45 GMT in search for hints on future monetary policy plans.

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