USD/JPY dives as Powell put is reactivated
Aug 23 (Reuters) -USD/JPY fell sharply on Friday, once again breaking below 145 as Federal Reserve Chair Jerome Powell said the time has come for policy to adjust, which should brighten the mood of shorts in the pair following relatively hawkish BoJ comments.
Powell's unambiguously dovish speech pushed the odds of a 50bps September up to 34% from 28% 0#FEDWATCH.
Powell said that the Fed will do everything they can to support a strong labor market, which could leave markets with a sense that a Powell put has been activated.
Unlike his colleagues, who had signaled that the rate path should be gradual and methodical, Powell highlighted that the timing and pace of rate cuts will depend on incoming data. This indicates that the size of a September rate cut will be predominantly dependent on the next non-farm payrolls release.
While at present the data leans in favor of a 25bps cut, should next month’s labor market report show a material cooling, this would pave the way for step up to 50bps.
Elsewhere, Bank of Japan Governor Kazuo Ueda largely stuck to the hawkish script he adopted at last month’s post-decision press conference.
Thus, with Japanese rates pricing in 7bps of easing by year-end 0#BOJWATCH, it does appear that markets may be under-pricing policy tightening from the BoJ. Combining this with a dovish Fed does bode well for USD/JPY shorts.
For more click on FXBUZ
Fedwatch today https://tmsnrt.rs/471biLp
(Justin McQueen is a Reuters market analyst. The views expressed are his own.)
</body></html>
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
