Wednesday, 13 September 2017

What’s next? – USDJPY 13.09.17

Posted by Valentine at 11:40 Labels:

USDJPY

The dollar/yen was 0.10 percent lower as of 07:10 GMT on Wednesday to trade at 110.04, as the dollar corrected downwards in early trading hours.

The pair extended its recovery on Tuesday as geopolitical and Irma worries continued to ease among investors and risky demand increased.

Earlier this week, the UN Security Council approved a new package of sanctions against North Korea, banning its textile exports and limiting their crude and refined products imports.

While hurricane Irma has left nearly 7.3 million homes and businesses without electricity in Florida, South Carolina, Alabama and Georgia and devastated cities such as Jacksonville, insurance companies said damages are not as extensive as initially estimated.

The US dollar index, which gauges the greenback against a basket of six major rivals, was 0.33 percent lower at 91.56 by the time of this writing.

The US dollar received extra support from July’s JOLTs job openings, which came in at 6.170 million, above an originally estimated 5.960 million and a previous 6.116 million.

A rising number of job openings is seen as positive for the economy and builds a stronger case for the Federal Reserve to move forward with its monetary policy normalization plan.

According to Fed funds tracked by CME Group’s FedWatch program, investors are currently pricing in a 41 percent probability of a 25 basis points rate hike by December.

Ahead in the day, traders will be searching for further economic evidence to assess chances of future monetary policy adjustments. Inflation data will be in focus.

The producer price index (PPI) for August is due for release as of 12:30 GMT, with a 0.3 percent build eyed. The Federal Budget Balance will be available at 18:00 GMT, with a $119.5 billion deficit seen.

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