What’s next? – USDJPY 22.11.17

The dollar was trading 0.22 percent lower vs the Japanese yen at 112.19 as of 05:40 GMT, with investors keeping an eye on incoming economic data from the US.

No relevant data was released in Asian hours. Ahead in the day, traders will focus on US durable goods orders at 13:30 GMT, which are seen at a 0.3 percent growth rate for October.

The Labor Department will release its weekly jobless claims count at 13:30 GMT. Analysts are expecting a reduction to 240,000 from a prior week 249,000.

The University of Michigan will present its consumer expectations and consumer sentiment indicators for November as of 15:00 GMT, with readings of 87.6 and 98.0 eyed.

However, attention will mainly be directed to the release of Federal Reserve meeting minutes at 19:00 GMT. Investors will closely monitor the document in search for hints on the regulator’s future monetary policy changes.

According to Fed funds tracked by CME Group’s, market players are currently pricing in a nearly 100 percent chance of a 25 basis points interest rate hike by December.

Higher benchmark rates tend to boost demand for the US dollar, which means the USDJPY could move to the upside, as well as other pairs with USD as its main component.

Traders will also pay attention to Washington, where the Senate is likely to vote on a massive Republican reform pushed by Donald Trump’s administration. So far this year, markets have long speculated on a massive tax reductions for both individuals and corporations.

The US dollar index, which measures the greenback against a basket of six major rivals, was trading at 93.84, 0.04 percent to the downside by the time of this writing.

Fort Financial Services