Wednesday, 4 October 2017

What’s next? – USDJPY 04.10.17

Posted by Valentine at 11:09 Labels:

USDJPY

The dollar/yen was 0.25 percent down as of 07:20 GMT on Wednesday to trade at 112.56, with the American dollar retreating from six-week highs on profit taking and a cautious positioning.

The US dollar index, which gauges the greenback against a basket of six major rivals, was trading at 93.32 by the time of this writing, down 0.10 percent.

Overnight, the dollar dropped across the board as market participants as no economic data was released in Tuesday’s session and as they looked ahead to a speech of Fed’s chief today.

Federal Reserve Chairwoman Janet Yellen participates today at the Community Banking in the 21st Century Conference. She is scheduled to speak as of 19:15 GMT and investors will be paying close attention to her rhetoric in search for more “hawkish” support.

Last week, Yellen warned that raising interest rates “too gradually” could overheat the labor market. Her comments boosted expectations for a third rate hike later this year.

According to Fed funds tracked by CME Group’s FedWatch tool, traders are currently pricing in a 76.7 percent probability of a 25 basis points rate hike by December.

Also, traders will keep an eye on key economic reports set for release today. ADP nonfarm employment change for September is due at 12:15 GMT. This report anticipates official data from the Labor Department, which will be presented on Friday.

In a separate report, the Institute for Supply Management will be releasing its non manufacturing PMI index for September at 14:00 GMT. Markit’s services PMI is up at 13:45 GMT.

All eyes are placed at the dollar side, as Asian markets show little activity. China, Taiwan and South Korean markets were closed for holidays earlier today.

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