Wednesday, 27 September 2017

What’s next? – USDJPY 27.09.17

Posted by Valentine at 10:27 Labels:

USDJPY

The dollar/yen was 0.16 percent up as of 05:05 GMT on Wednesday to trade at 112.39, with market participants looking ahead to fresh economic reports later in the day.

Investors will be monitoring the releases of US durable goods orders and pending home sales for August as of 12:30 GMT.

Attention will also be directed FOMC members Bullard, Brainard and Rosengreen are scheduled to speak as of 17:30 GMT, 18:00 GMT and 23:00 GMT respectively.

Federal Reserve Janet Yellen offered prepared remarks on Tuesday, insisting that the US regulator has to move forward with its monetary normalization process to avoid overheating.

“It would be imprudent to keep monetary policy on hold until inflation is back to 2 percent,” said Fed’s chief in prepared remarks at the National Association for Business Economics’ annual meeting in Cleveland.

According to Fed funds tracked by CME Group’s FedWatch tool, traders are currently pricing in a 74.6 percent probability of a 25 basis points rate hike by December.

Her comments supported the US dollar across the board as expectations for a third rate hike later this year increased. Yellen’s rhetoric remains clearly hawkish.

The US dollar index, which gauges the greenback against six major currencies, was trading at 92.94 by the time of this writing, up by 0.17 percent.

However, geopolitical tensions capped gains as the US imposed sanctions against 8 North Korean banks and 26 individuals for financially supporting Pyongyang's nuclear program.

Earlier this week, North Korea Foreign Minister said the US has declared war against his nation, assuring Kim Jong Un’s regime has the right to shoot down American bombers.

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