For several hours prior to the Julio Labor Report in the US, weakest than expected, the USD/JPY was negotiated again above the level of 150.00 for the first time since the beginning of April, reports the FX analyst of Rabobank, Jane Foley.
The hopes of a moderate Fed resurface after the weakest labor report
“The result of the monetary policy meetings of this week of the FED and the BOJ contributed to the movement, being the Fed widely interpreted as less moderate than expected and the boxwood as less aggressive. The US employment report has recharged the hopes of a relief by the Fed.”
“We hope that the USD/JPY can extend today’s downward movement on a 3 months horizon, but that assumes that the market maintains the expectation that the Boj’s rates are increased around the change of the year. To a large extent, that depends on how Trump’s post-Arance world goes to the Japanese economy in Trump’s post-Arance.”
“Despite its robust tone in July, the USD has shown today that it is susceptible to a new weakness in the face of speculation that the Fed will adopt a moderate policy inclination in the future. It is Rabobank’s opinion that the Fed could cut rates four times next year, in addition to a movement next month.”
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.
