The Fed and the Bank of Japan Shadow USD/JPY
USD/JPY weakened slightly on Monday (July 27th), trading around 163.70. The currency pair weakened 0.09% as the US dollar lost some of its strength.
Pressure on the dollar emerged after the United States and Iran confirmed a pause in attacks. This development improved market sentiment and reduced demand for the dollar as a safe haven.
The US Dollar Index remained in negative territory, while the US stock market strengthened. This indicates that investors are starting to return to riskier assets.
The market now awaits the Federal Reserve's interest rate decisions on Wednesday and the Bank of Japan's on Friday. Both central banks are expected to maintain interest rates, but the tone of their statements will be a key focus.
In Japan, most economists expect the Bank of Japan to raise interest rates again before the end of the year. Expectations of this policy normalization provide additional support for the yen.
US durable goods orders rose only 0.3% in June, well below the 1.6% forecast. The easing of conflict, weak US data, and caution ahead of central bank meetings have the potential to keep USD/JPY under pressure in the near term. (arl)
Source: Newsmaker.id
