Japanese yen has recovered some of its losses versus the US dollar during the last two days.
On Wednesday, the Japanese Yen (JPY) lost back some of its recent big gains. Against the US Dollar (USD) and resumed its downward trend for the second day in a row. The hawkish FOMC minutes released on Tuesday. Together with better-than-expected US labor market and consumer mood data reported. On Wednesday, raised the USD from its lowest level since August 31. As a result of this, , aided the USDJPY pair. In capitalizing on its robust recovery move from the 147.15 region. Or slightly higher than a two-month low reached on Tuesday.
Bets that the Fed would stop rising interest rates cap the recent USD recovery and contribute to the decline.
Spot prices, on the other hand, struggle to maintain their pace beyond the 149.75 region. And will run into some supply on Thursday. Investors appear to believe that the Federal Reserve (Fed) has completed its policy tightening campaign. And will begin lowering rates in May 2024. This causes a new leg down in US Treasury bond yields. Prompting some USD selling. Aside from that, predictions of a likely hawkish turn in the Bank of Japan’s (BoJ) policy stance kept the USDJPY pair low near the 149.00 level as the European session begins.
Daily Digest Market Movers: The Japanese Yen appears to be strengthening more. in comparison to the US Dollar.
The Japanese Yen fell to 149.75 per US dollar on Wednesday. But regained some of its losses from the previous two days on Thursday.
The USDJPY fell on Thursday due to speculation. That the Bank of Japan (BoJ) will virtually probably stop its negative rate policy in the first few months of 2024.
The minutes of the Federal Reserve’s most recent meeting showed. That the central bank was likely to keep interest rates low for some time.
Initial Jobless Claims in the United States fell by 24,000 to a seasonally adjusted 209,000 for the week ending November 18, the lowest level in more than a month.
The encouraging results revealed that, despite economic worries. The US labor market remains resilient. Not cooling as swiftly as the Fed may have anticipated.
According to the University of Michigan’s poll, the Consumer Sentiment Index fell for the fourth consecutive month in November, coming in at 61.3.
Inflation expectations, on the other hand, increased to 4.5% in November. Up from 4.2% the previous month. Climbing for the second month in a row and hitting their highest level since April 2023.
Durable Goods Orders fell significantly in October, by 5.4%, more than expected, reversing the prior month’s gain of 4.6%.
Market players have effectively factored in any further Fed rate hikes and now estimate a better-than-50 percent possibility of a rate cut by May 2024.
Traders may also choose to reduce their positions throughout the Trading activity is expected to be reduced in the Asian session due to the US Thanksgiving holiday.
Traders are now looking for flash PMI numbers from the Eurozone and the United Kingdom, which might influence global risk sentiment and the safe-haven JPY.
The spotlight will next shift to Japan’s National Core CPI, which is scheduled to be released during the Asian session on Friday, followed by flash US PMIs later in the day.
