USDJPY appreciates as risk-off sentiment rises.
The USDJPY has reached its highest level in eleven months, hovering around 149.90. This upward trend may be linked to the US Dollar (USD) profiting from a fall in investor appetite and heightened risk-aversion attitude. Which has resulted in a flow of funds into the safe-haven USD.
Bank of Japan announced an unannounced bond-purchasing exercise.
The Bank of Japan (BoJ) maintained its ultra-easy monetary policy stance on Monday. As shown by the announcement of an unplanned bond-purchasing operation. This step is intended to halt the growing trend in Japanese government bond rates.
The Bank of Japan’s participation in the bond market is part of a larger strategy. As part of its continued efforts to keep monetary policy accommodative and financial markets stable. The central bank frequently purchases bonds in order to influence interest rates. And guarantee financial system liquidity.
Higher US Treasury rates help to bolster the US currency.
The US Dollar Index (DXY) reached an 11-month high as US Treasury yields rose. The 10-year US Treasury yield has risen over its highest level since 2007. Currently standing at 4.67% as of this writing.
Furthermore, the mixed United States (US) statistics provided on Monday bolstered the Greenback. The US ISM Manufacturing PMI rose to 49.0 in September from 47.6 the previous month. Above the market estimate of 47.7. Manufacturing Prices Paid dropped dramatically from 48.4 to 43.8. The Employment Index increased from 48.4 to 51.2 points.
Moreover Governor of the Federal Reserve (Fed) On Monday, Michelle Bowman remarked that it seemed prudent to hike the policy rate further and keep it at restrictive levels for a prolonged length of time.
Furthermore Fed Vice Chair for Supervision Michael Barr stressed the importance of monetary policy caution. According to Barr, the central bank should consider not only how much interest rates will rise. But also how long they will remain at a properly restrictive level. Despite this, Barr believes the Fed can control inflation without significantly harming the labor market.
USDJPY Traders are looking forward to the publication of US employment data.
USDJPY Traders are looking forward to the publication of US employment data, which includes the ADP report on Wednesday and the Nonfarm Payrolls report on Friday.
