USDJPY is trading in positive territory near 142.60, up 0.14% on the day.
During the Asian session on Wednesday, the USDJPY pair gains ground. Following the announcement of the Bank of Japan’s (BoJ) Summary of Opinions, the pair touched 142.84 and is now trading around 142.60. In the final week of 2023, the market is likely to be calm due to low trade volume.
BoJ Summary of Opinions, if the wage-price cycle worsens, the central bank will contemplate a policy adjustment.
The Summary of Opinions was provided by the Bank of Japan early Wednesday. from the December Monetary Policy meeting. The market was unsurprised by the meeting’s words, and the Japanese central bank is aware that conditions may exist for withdrawing YCC and eventually hiking short-term interest rates out of negative territory. However, no decision has been made on the timing of the policy adjustment.
On Monday, Bank of Japan Governor Kazuo Ueda stated that the potential of meeting the central bank’s inflation objective was steadily improving and that the central bank would consider changing policy if the chances of meeting the 2% target were sufficiently improved.
On the other hand, last week’s dropping inflation numbers reinforced speculation. That the Federal Reserve (Fed) will lower interest rates in the coming year. As a result, the US is under some selling pressure. The Core Personal Consumption Expenditures Price Index (PCE) in the United States grew 3.2% year on year in November. Falling short of the market consensus of 3.3%. The monthly Core PCE results during the same time were 0.1%, which was lower than the 0.2% expected.
Currency movements are expected to be influenced by risk sentiment. And continuous modifications in central bank policy throughout the holiday season’s sparse trade. On Wednesday and Thursday, the US Richmond Fed Manufacturing Index for December. And the Initial Jobless Claims will be revealed. However, these data may have little impact on the market.
