Event to pay attention to today:
15:30 GMT+3. USD – Producer Price Index
USDJPY:
The Japanese Yen (JPY) retreated from its recent gains on Thursday, while the US Dollar (USD) rose following assertive statements from the US Federal Reserve (FOMC), boosting the USD/JPY pair. At its meeting on Wednesday, the Federal Open Market Committee (FOMC) left the benchmark lending rate unchanged at 5.25-5.50 per cent for the seventh consecutive time, as expected.
The Japanese Yen may experience limited declines as market participants exercise caution ahead of the Bank of Japan’s (BoJ) decision on Friday. While the BoJ is expected to leave interest rates unchanged, traders will be monitoring any announcements regarding a potential reduction in the central bank’s monthly bond purchases.
The CME FedWatch Tool indicates that the probability of a Federal Reserve interest rate reduction of at least 25 basis points in September has decreased to 61.5% from 69.4% a week earlier.
On Thursday, investors will be monitoring the release of the Producer Price Index (PPI) data, which is expected to provide further insight into the current state of the US economy.
Trade recommendation: Trading mainly by Buy orders from the current price level.
Origin: FreshForex
