- Japanese Yen recovery attempts remain limited ahead of Fed decision.
- Investors are bracing for a 25bp cut combined with hawkish forward guidance.
- In Japan, the BoJ is expected to keep rates unchanged on Thursday.
The Dollar maintains its upward trend from the lows of early December intact. The pair’s reversal from the mid-range of 154.00 has been contained at 153.20, and the pair is trading sideways on Wednesday, awaiting the Fed’s decision.
The US central bank is widely expected to cut rates by 25 basis points, but the subsequent monetary policy statement and, above all, economic and interest rate projections are likely to show a hawkish tilt.
Macroeconomic figures released this week reveal strong economic activity and buoyant consumption levels. These figures are consistent with higher inflationary pressures and will likely lead monetary policymakers to reduce monetary easing projections for next year.
In Japan, on the other hand, the Bank of Japan seems less concerned about the impact of a strong Yen on the country’s inflation. Some board members suggested last week that it’s okay to wait until next January to raise rates even further. This has been weighing on the Yen, which depreciated almost 3% in a six-day sell-off before Tuesday.
Japanese Yen PRICE Today
The table below shows the percentage change of the Japanese Yen (JPY) against major currencies today. Japanese Yen was the strongest currency against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.08% | 0.03% | 0.08% | 0.10% | 0.32% | 0.40% | 0.12% | |
| EUR | 0.08% | 0.10% | 0.18% | 0.18% | 0.40% | 0.49% | 0.20% | |
| GBP | -0.03% | -0.10% | 0.06% | 0.08% | 0.30% | 0.38% | 0.10% | |
| JPY | -0.08% | -0.18% | -0.06% | 0.00% | 0.22% | 0.29% | 0.02% | |
| CAD | -0.10% | -0.18% | -0.08% | -0.00% | 0.22% | 0.30% | 0.02% | |
| AUD | -0.32% | -0.40% | -0.30% | -0.22% | -0.22% | 0.07% | -0.21% | |
| NZD | -0.40% | -0.49% | -0.38% | -0.29% | -0.30% | -0.07% | -0.28% | |
| CHF | -0.12% | -0.20% | -0.10% | -0.02% | -0.02% | 0.21% | 0.28% |
The heat map shows percentage changes for major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change shown in the box will represent the JPY (base)/USD (quote).
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.
