Event to watch out for today:
16:45 GMT+3. USD – Composite PMI
USDJPY:
The Japanese Yen (JPY) continues to lose ground for the third consecutive session on Monday in trading diluted by holidays. This downward movement could be influenced by growing concerns that the Bank of Japan (BoJ) is in no hurry to raise interest rates.
The BoJ kept its interest rate target range of 0.15-0.25% at its meeting on Friday. BoJ Governor Kazuo Ueda emphasized that the central bank “will continue to adjust the level of monetary policy easing as necessary to achieve our economic and inflation targets.” Ueda recognized that while Japan’s economy is showing a moderate recovery, there are still signs of weakness.
The US dollar (USD) continues to rise as Treasury yields recover their losses. However, the dollar could face challenges due to growing expectations of additional rate cuts by the U.S. Federal Reserve (Fed) in 2024. According to the CME FedWatch Tool, markets are pricing in a 50 percent chance of a 50 basis point rate cut to a range of 4.0-4.25 percent by the end of this year.
Trading recommendation: Watch the level of 144.00, if the level is fixed below consider Sell position, if the level rebounds consider Buy position.
Origin: FreshForex
