An event to look out for today:
16:30 GMT+3. USD – Chairman of the Board of Governors of the Federal Reserve Board Jerome Powell will deliver a speech
USDJPY:
Japan’s Finance Minister Shunichi Suzuki said that the authorities are concerned about the impact of “rapid and unilateral” exchange rate movements on the economy, adding that excessive volatility in the currency market is undesirable and that the authorities will respond appropriately to such movements. This, in turn, could support the yen in the near term and limit the pair’s upside. Analysts at OCBC said, “USD/JPY continues to trade near recent highs. It is also near the highest level since 1986. There are expectations that the Japanese authorities may intervene soon. While the level of the yen is one factor to consider, officials are also paying attention to the pace of depreciation as the goal of the intervention is to curb excessive volatility.”
U.S. manufacturing output contracted for the third straight month in June amid weak demand and rising interest rates. ISM’s Purchasing Managers’ Index (PMI) for the US manufacturing sector fell to 48.5 in June from 48.7 in May. The figure was below the market consensus of 49.1. Nevertheless, hawkish comments from Fed officials continue to support the USD despite weaker-than-expected US economic data.
The US Dollar (USD) halted its three-day losing streak amid rising US Treasury yields due to increased expectations of interest rate cuts by the Federal Reserve (Fed) in 2024. Today traders are expecting a speech by Federal Reserve Chairman Jerome Powell.
Trading recommendation: Trade mainly with Buy orders from the current price level
Origin: FreshForex
