The Bank of Japan's interest rate strategy will adapt | 07 Agustus 2024

07 Agustus 2024, USD/JPY

The Bank of Japan's interest rate strategy will adapt

Event to watch out for today:

17:30 GMT+3. USD - Crude Oil Inventories data from the Department of Energy

USDJPY:

The Japanese Yen (JPY) continues to lose ground against the US Dollar (USD) for the second consecutive day. This decline can be attributed to comments from Bank of Japan (BoJ) Deputy Governor Shinichi Uchida on Wednesday: "We will not raise rates when markets are unstable," according to Reuters.

Deputy Governor Uchida also noted that the BoJ's interest rate strategy will adapt if market volatility changes economic forecasts, risk assessments or projections. Given recent market volatility, he emphasized the need to carefully monitor the economic and price effects of its policy, stating, "We should maintain the current degree of monetary policy easing for the time being."

The upside potential for the USD/JPY pair may be limited as the U.S. dollar faces challenges and markets expect a more significant rate cut in September. According to the CME FedWatch tool, the probability of a 50 basis points (bps) interest rate cut by the US Federal Reserve (Fed) in September is 67.5%, up from 13.2% a week earlier.

Trading recommendation: Trade mainly with Sell orders from the current price level.

Up to $20 for each lot in real money - get a guaranteed income by connecting Cashback promotion!

David Johnson
Analyst of «FreshForex» company
Setuju dengan review?
opini pedagang:
Close
Masuk
Browser Anda tidak mendukung kue. Jika cookie dinonaktifkan di browser Internet Anda, Anda mungkin memiliki masalah dengan render daerah Pribadi. Cara mengaktifkan dukungan cookie.