USDJPY rises towards 149.00 psychological level.
The USDJPY is up for the second day in a row, trading at 148.80 during the Asian session on Wednesday. In the previous session, the pair recovered on the back of bullish risk sentiment. In the middle of the Middle East turmoil.
The Bank of Japan is contemplating revising its core inflation forecast for fiscal year 2023/24 higher.
The Bank of Japan (BoJ) is contemplating increasing its fiscal year 2023/24 core Consumer Price Index (CPI) projection. To 3%, up from 2.5% before, reflecting an upbeat stance on inflation.
Country Garden in China is poised to publicly fail on a $15 million coupon payment.
The problem with the potential of China’s Country Garden Another wrinkle is the failure to make a $15 million coupon payment. Despite signs of revival in China’s broader economy. The property sector’s issues remain something to keep an eye on.
If Country Garden follows forward with the default, it might have far reaching consequences for the Japanese Yen. The economic linkages between Japan and China are strong. And disruptions in one may often have rippling effects in the other.
Furthermore, the non-seasonally adjusted current account decrease in Japan for August. Which fell short of expectations, may cause some anxiety, particularly in light of the larger economic situation.
The data showed a reading of 2,279.7 billion, compared to the prediction of 3,090.9 billion. And the prior reading of 2,771.7 billion. The Japanese economic calendar for the rest of the week is noticeably light. With only one event scheduled. The dissemination of low-impact data is planned.
Finance Minister Shunichi Suzuki’s remarks on the USDJPY falling.
Furthermore, Finance Minister Shunichi Suzuki’s remarks on the USDJPY falling. As a result of interest rate differentials provided insight on one of the variables impacting currency movements.
Leading a conference of finance ministers and central bank governors from the Group of Seven (G7) nations. On October 12 provides Japan with a forum to debate crucial topics such as the Ukraine conflict. And the status of the global economy.
On the other hand, a cascade of dovish-leaning statements from Federal Reserve (Fed) members. Expressing fears that rising long-term US Treasury yields may hinder the Fed from raising rates at its upcoming meetings.
Raphael Bostic, President of the Federal Reserve Bank of Atlanta, stated that the existing monetary policy is already restrictive, and that more rate rises are not warranted. . Two other Fed members established the dovish interest rate trend on Monday, with Minneapolis Fed President Neel Kashkari making a similar stance on Tuesday.
By press time, the US Dollar Index (DXY) had recovered from its intraday losses and was trading around 105.80. However, at the time of writing, the 10-year US Treasury bond yield is 4.63%.
USDJPY investors will pay special attention to economic data.
USDJPY investors will pay special attention to economic data, particularly inflation estimates. On Wednesday, the Producer Price Index (PPI) will be released, followed by the FOMC meeting minutes and the Consumer Price Index (CPI) on Thursday.
