USD/JPY (current price: 104.11)
The U.S. Dollar continued to march higher compared to its major peers on Friday, as the mostly better than expected economic releases reinforced the speculation regarding a FED rate hike in November. The Japanese Yen remains under short-term pressure, although the next step by the Bank of Japan is still unclear, with the domestic economy still being among the weakest globally. The slightly better than expected Chinese numbers and the persistent global worries were not enough to hold back the Dollar, as it gained further ground on the safe haven currency in late trading.
Our assessment: The cross might still be headed higher before the next FED meeting, but this morning’s weakness could point to a strong Yen in the case of a deeper global correction in stocks.
