Daily Digest Market Movers: Japanese Yen benefits from the recent alleged intervention by authorities
- Bank of Japan data showed on Thursday that Japanese officials may have spent around ¥3.66 trillion on Wednesday to boost the domestic currency, lending support to the Japanese Yen.
- Japan's top currency diplomat, Masato Kanda, declined to directly confirm that intervention had occurred and said that the Ministry of Finance will disclose data at the end of this month.
- The Federal Reserve dismissed the prospects for any further interest rate hikes despite sticky inflation, which continues to weigh on the US Dollar and exerts pressure on the USD/JPY pair.
- Meanwhile, Fed Chair Jerome Powell flagged no intention to cut interest rates in the near term, citing the lack of progress in the fight to bring inflation back to the central bank's 2% target.
- In contrast, the BoJ has indicated that accommodative financial conditions will be maintained for an extended period, which, in turn, might hold back the JPY bulls from placing aggressive bets.
- Japan's finance minister, Shunichi Suzuki, and BoJ Governor Kazuo Ueda will hold a press conference on the sidelines of the ADB meeting at 13:45 GMT, which should provide some impetus.
- Later, during the North American session, the release of the US jobs data, or the Nonfarm Payrolls (NFP) report, will influence the USD and determine the near-term trajectory for the USD/JPY pair.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
If you like, reward to support.
Hot
No comment on record. Start new comment.