The Japanese Yen (JPY) strengthens again this morning, posting a 0.5% gain against the US Dollar (USD) following a Bloomberg report indicating that Bank of Japan (BoJ) officials believe they are likely to raise the rate policy next week, barring a disruptive start to the Trump presidency, says Shaun Osborne, Chief FX Strategist at Scotiabank.
BoJ likely to adjust rate policy next week
“The swaps reflect 20 basis points of tightening expected for the January 24 meeting. The stabilization of US Treasury yields around yesterday’s lows has also helped improve sentiment towards the JPY. High beta/emerging market currencies are underperforming, with the MXN and NOK at the bottom of the overnight performance chart against a generally stable to slightly firmer USD.”
“The GBP weakened and UK bond yields declined in response to weaker-than-expected UK growth data. The Fed’s Beige Book release yesterday noted that economic activity had increased ‘slightly to moderately ‘Generally, contacts were more positive about the economic outlook, but, in ‘several districts’ there were concerns that the impact of tariff and immigration policy under the new administration ‘could negatively affect the economy.'”
“Those concerns support the idea that policymakers will likely take time to assess the impact of President-elect Trump’s initiatives ahead of his next rate decision. US data releases this morning include Retail Sales, Philadelphia Fed Survey, Import Prices, Weekly Claims, Business Inventories and NAHB Housing Market Index Consumers anticipating tariffs are expected to help drive another healthy rise in China sales. publishes data tonight GDP, industrial production and retail sales.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
