The yen pair depicts the market’s wary mood ahead of the US Federal Reserve policy decision with a bank holiday at home and light calendar elsewhere challenges the momentum of late.
Additional to the tapering frenzies, rumors surrounding the US stimulus also weigh on the market’s mood. In contrast to the previous hopes of getting the deal done during this week, US Senator Joe Manchin said, to have principal concerns that will need to be addressed to secure his vote for the $1.75 trillion economic package. The policymaker was quoted voicing new optimism that a deal could finally be reached that would win his support on President Joe Biden’s domestic agenda before Thanksgiving.
A bounce back in the US Treasury yields and inflation expectations ahead of the key Fed decision also challenged the USDJPY traders. Furthermore, Japan’s Fumio Kishida re-elected as the Prime Minister decreases challenges for the Bank of Japan and thus the pair traders convey fears of any reduction in the easy money amid the recently firmer price pressure into the economy.
Amidst these plays, US Treasury yields rebound while the S&P500 Futures print mild losses by the press time.
Looking forward, the US ADP Employment Change and ISM Services PMI for October may provide intermediate moves to the USDJPY prices ahead of the key Fed decision with the traders seeking for a $15.00 billion tapering.
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