- USD / JPY balanced between tepid gains / minor losses during the early North American session.
- The USD’s sustained sell bias kept the intraday move attempt at bay amid a softer tone of risk.
- The USD remained depressed after mixed macroeconomic data from the US and before the minutes of the FOMC meeting.
The pair USD/JPY It maintained its neutral bias during the early North American session and moved shortly after the US macroeconomic releases. The pair was last seen trading just below 104.50, almost unchanged for the day.
The pair struggled to capitalize on this week’s good rally from the 103.70-65 region and balanced between tepid gains / minor losses for the second consecutive session on Wednesday. A combination of factors kept the attempt at a positive intraday move limited, although the downside was also limited ahead of the minutes of the FOMC meeting.
The US dollar added to overnight losses and weakened further amid concerns about the economic fallout from the continued rise in new coronavirus cases. This, coupled with speculation of further easing monetary policy by the Fed and a softer tone around US Treasury yields, undermined the dollar.
The dollar did not get respite and remained depressed after the release of mixed economic data from the United States. The preliminary US GDP report showed that economic growth remained at an annualized pace of 33.1% during the third quarter of 2020. The reading was in line with anticipated estimates, but was slightly below market expectations of 33.2 %.
On the other hand, US durable goods orders performed better than expected, although they were largely offset by an unexpected jump in initial weekly jobless claims and thus did little to provide a significant boost to the USD / JPY pair. Investors also seemed reluctant, preferring to wait for new clues about the Fed’s policy outlook.
Therefore, the key focus will remain on the minutes of the latest FOMC monetary policy meeting, which will play a key role in boosting short-term sentiment around the dollar and helping investors determine the next stage of a move. directional of the USD / JPY pair. .