Event to watch out for today:
15:30 GMT+3. USD – Consumer Price Index
USDJPY:
The Japanese yen (JPY) continues to strengthen against the US dollar (USD) on Wednesday. The USD/JPY pair is facing challenges due to growing expectations that the Bank of Japan (BoJ) will raise rates again in 2024. Japan’s parliament will hold a special session on August 23 to discuss the Bank of Japan’s (BoJ) decision to raise interest rates last month. BoJ Governor Kazuo Ueda is expected to attend the session, government sources cited by Reuters said.
Safe-haven flows may have supported the yen amid rising geopolitical tensions in the Middle East. The BBC reported on Tuesday that the United States had sent a guided missile submarine to the Middle East.
The US dollar lost ground after the release of lower-than-expected US producer price index (PPI) data on Tuesday. This raised the stakes for an interest rate cut by the US Federal Reserve (Fed). On Wednesday, investors are likely to keep an eye on the US CPI inflation report, which could provide some hints that the Federal Reserve (Fed) will cut interest rate.
Trading recommendation: Trade predominantly with Sell orders from the current price level.
Origin: FreshForex
