All Articles Tagged - USDJPY

Market Comment – Dovish Fed and labor data weigh on dollar

Posted on August 22, 2024 at 8:19 am GMT

Fed minutes reveal some members wanted a July cut Nonfarm payroll growth revised down by the most since 2009 PMIs in focus ahead of Powell’s Jackson Hole speech Wall Street gains ground, oil extends slide Dollar slips as traders ramp up Fed cut bets The dollar extended its slide against its major counterparts on Wednesday, as the minutes of the July 30-31 Fed gathering revealed that officials are strongly leaning towards a September rate cut, with some members being willing [..]

Market Comment – Dollar looks at the Fed minutes for a small boost

Posted on August 21, 2024 at 7:32 am GMT

Dollar weakness dominates the FX space Today’s Fed minutes could halt the euro/dollar rally Markets are gearing up to the Powell’s Jackson Hole speech Oil prices remain under pressure Dollar underperformance continues The euro continues to take advantage of the US dollar’s weakness by trading to the highest level since December 2023. This pair has managed to quickly climb above the critical 1.1032-1.1095 area, which has acted as strong resistance in the recent past, with the next plausible target being [..]

Technical Analysis – USDJPY rises but still in negative territory

Posted on August 21, 2024 at 6:56 am GMT

USDJPY remains below 200-day SMA and uptrend line RSI ticks higher reflecting the latest move USDJPY is gaining some ground after three consecutive red days and losing around 3% from the 149.50 resistance level. The market has been trading beneath the long-term ascending trend line since the downfall at the beginning of August and more importantly is holding below the 200-day simple moving average (SMA). Switching to technical oscillators, the MACD is holding in the negative region but rose above [..]

Volatility ebbs as recession fears evaporate – Volatility Watch

Posted on August 20, 2024 at 10:45 am GMT

Besides EUR/USD, FX volatility subsides as markets digest rate path repricing Volatility in precious metals is still high, but oil enters calmer waters Stock indices and Bitcoin volatility at their bottom of their 30-day range Recession concerns from a weaker-than-expected July NFP report have been fading, though they led to notable adjustments in expectations about major central banks’ interest rate paths. This week, investors are focused on Jerome Powell’s Jackson Hole speech, anticipating insights on the Fed’s view on the current economic conditions and prospective rate [..]

Week Ahead – Jackson Hole and PMIs enter the spotlight

Posted on August 15, 2024 at 1:50 pm GMT

As recession fears ease, investors lock gaze on Jackson Hole Eurozone and UK PMIs to affect ECB and BoE expectations Canadian inflation could back third consecutive BoC cut Japan’s Nationwide CPI data also on the agenda Jackson Hole to test overly dovish Fed cut bets Following the unjustified panic triggered by the weaker-than-expected NFP report for July, investors have taken a calmer stance, thereafter, reevaluating their aggressive Fed rate cut bets as the incoming data suggested that the US economy [..]

Market Comment – US retail sales eyed after CPI report fails to set off fireworks

Posted on August 15, 2024 at 8:45 am GMT

US inflation eases further in July but market reaction is muted Wall Street unimpressed, dollar mixed Yen and pound supported by upbeat GDP data US CPI does little for 50-bps cut hopes The steady recovery in risk appetite remains on track following yesterday’s inflation numbers out of the US that seem to have somewhat underwhelmed investors. Headline CPI eased to 2.9% y/y in July instead of staying unchanged at 3.0% as expected, while core CPI edged down to 3.2% y/y. [..]

Market Comment – Markets perk up as soft PPI sets the tone ahead of US CPI

Posted on August 14, 2024 at 8:36 am GMT

Stocks perk up after soft US producer prices, all eyes now on CPI report Kiwi slumps after RBNZ cuts rates and signals more to come Pound also slips on weaker-than-expected UK inflation data Gold holds near record high as dollar skids, ME tensions mount Mood brightens ahead of US CPI data The rebound in equity markets gained further traction on Tuesday after US producer prices rose less than expected in July, raising hopes that today’s report on consumer prices will [..]

Technical Analysis – USDJPY’s sideways trading might end abruptly

Posted on August 14, 2024 at 7:21 am GMT

USDJPY continues to hover around the 146 area Market participants are preparing for the US CPI release Momentum indicators remain mixed USDJPY continues to trade sideways, hovering around the 146.65-147.71 area for the fifth consecutive session. The bears are holding most of the gains of the sizeable correction from the early July high of 161.94, but have failed to take advantage of USD’s recent underperformance. With traders digesting the overnight news of the Japanese PM Kichida’s resignation, the focus is [..]

Asian markets bounce back; eyes on local data, not just US CPI – Preview

Posted on August 13, 2024 at 2:02 pm GMT

Asian equities extend rebound ahead of key data Japanese GDP, Aussie jobs and Chinese indicators on the agenda Any upsets could roil the fragile sentiment A cautious rebound for stocks Stock markets in Asia have not been immune to the global selloff in August amid the unwinding of the yen carry trade and renewed fears about a US recession. Japanese stocks, in particular, were hit hard by the sudden surge in the yen; the Nikkei 225 Index tumbled by almost [..]

Market anxiety fades but volatility remains high – Volatility Watch

Posted on August 13, 2024 at 11:22 am GMT

FX volatility smoothens a little bit as markets digest rate path repricing Volatility in commodities still high amid resurgence of geopolitical tensions Stock indices and Bitcoin still volatile while traders unwind bearish bets Recession concerns from a weaker-than-expected NFP report two weeks ago have been fading, though they led to notable adjustments in expectations about major central banks’ interest rate paths. For that reason, volatility in FX pairs has been elevated, albeit a tad softer than last week. The yen crosses remain the most volatile as the BoJ has scrapped [..]

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