OctaFX | OctaFX Forex Broker
Open trading account
Back

Dovish FOMC minutes and lower US yields weigh on USD/JPY - BTMU

FXStreet (Łódź) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ points out that FOMC's cautious approach toward hiking rates and lower US yields exerted pressure on USD/JPY but the effect was dampened by BoJ governor Kuroda's speech given in New York.

Key Quotes


"The yen is rebounding in the near-term supported by a pick-up in safe haven demand as evidence continues to build that global growth is slowing. The more dovish than expected FOMC minutes and lower US yields are also weighing more specially on USD/JPY in the near-term."

"The scale of the correction lower in USD/JPY overnight has been partly dampened by comments from BoJ Governor Kuroda. He was speaking at the Economic Club of New York. Governor Kuroda emphasized that the BoJ still has a lot of options for additional easing and wouldn’t hesitate to do so if required, although he did not provide any clear signal that more easing is likely in the near-term."

"More specifically he noted that there are still a lot of financial assets it could purchase citing that the BoJ’s holdings of JGBs as a % of government debt outstanding which currently totals around 20% is still well below the Bank of England’s holdings which total around 40%. His overall tone remained optimistic that Japan’s economy remains on track to reach their 2% inflation target."

Copper gains despite growth concerns

Copper on the New York Mercantile Exchange (NYMEX) has gained today, despite the ongoing concerns of a global economic slowdown triggered by the downward revision of global growth forecasts by the International Monetary Fund (IMF) earlier this week.
Read more Previous

Copper gains despite growth concerns

Copper, on the New York Mercantile Exchange (NYMEX), has gained today despite the ongoing concerns of a global economic slowdown triggered by the downward revision of global growth forecasts by the International Monetary Fund (IMF) earlier this week.
Read more Next
Start livechat