Wednesday, 20 September 2017

What’s next? – USDJPY 20.09.17

Posted by Valentine at 11:48 Labels:

USDJPY

The dollar/yen was 0.11 percent lower as of 05:55 GMT on Wednesday to trade at 111.47, as traders opted for a cautious positioning ahead of Fed’s monetary announcement.

The US dollar index, which gauges the greenback against six major currencies, was trading 0.10 percent lower by the time of this writing at 91.47.

The Federal Open Market Committee is widely expected to leave interest rates unchanged in a range between 1.00 percent and 1.25 percent this month.

However, market participants will pay close attention to Chairwoman Janet Yellen’s press conference at 18:30 GMT, half an hour after the monetary event is concluded.

Traders will be searching for hints on the timing of the next rate hike and details on the plan to unwind the regulator’s massive $4.5 trillion balance sheet in the near future.

Another key aspect of the meeting will be the revision of Fed’s Summary of Economic Projections and dot-plot, which shows inclined to monetary changes is each FOMC member.

The pair is currently under natural pressure before the monetary event and we can expect little changes over the session, especially until decisions will be out.

Market players are also staying cautious ahead of Bank of Japan’s monetary policy encounter on Thursday. The Asian regulator is seen keeping its -0.10 percent rate for the time being. Attention will mainly be directed to the press conference as of 06:30 GMT.

On the data front, today’s session will include existing homes sales at 14:00 GMT, with a 0.3 percent increase eyed to a seasonally adjusted 5.46 million units.

Yesterday, the US Commerce Department said house building dropped by 0.8 percent to a seasonally adjusted annual rate of 1.18 million units last month. Building permits rose in August 5.7 percent to 1.3 million units, the highest since beginnings of 2017.

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