Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

USD/JPY stabilizes amid mixed economic signals and BoJ policy outlook

Published Dec 06, 2023 13:00
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
DXY
-0.10%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

TOKYO - The USD/JPY currency pair showcased resilience in Asian session on Wednesday, stabilizing above its three-month lows in the mid-147 range. This steadiness comes as US Treasury yields experience slight increases and the Bank of Japan's (BoJ) Deputy Governor Ryozo Himino maintains a dovish stance, emphasizing the continuation of easy monetary policies until Japan's price stability targets are achieved.

The dollar's position was bolstered by a modest uptick in US Treasury yields, which often influence the currency's value. Despite this, the greenback displayed signs of weakness due to growing investor expectations of a potential Federal Reserve rate cut in early 2024. These expectations are fueled by a mix of economic reports that suggest a shifting economic landscape.

Adding to the complex economic picture, Tokyo’s Core Consumer Price Index (CPI) rose by 2.3% in November. This increase has led to market speculation about a possible shift away from the BoJ's longstanding negative interest rate policy.

Tuesday's trading session was marked by significant volatility for the USD/JPY pair, which dipped to a low of 146.56 but managed to recover, closing nearly flat at 147.20. The initial drop in the US dollar was triggered by lower-than-expected JOLTS Job Openings data, hinting at a cooling labor market. However, the currency found support following a robust US ISM Services PMI report, which came in at 52.7.

Market participants now look ahead with keen interest to the upcoming ADP Employment Change data, seeking further evidence of labor market conditions. This data is considered a precursor to Friday's crucial Non-Farm Payroll (NFP) figures, which could provide additional insights into the health of the US economy and influence Federal Reserve policy decisions moving forward.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

USD/JPY stabilizes amid mixed economic signals and BoJ policy outlook
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email