The USDJPY continues its bearish turn as
The greenback’s jump from 103.69 to 104.63 on Monday due to rise in U.S. Treasury yields, then 104.75 in New York yesterday, shows a recent decline from November’s 105.67 peak price has made a temporary low at 103.66 last Wednesday and consolidation would be seen before heading to 105.13/15
On the downside, only below 104.15 (Tuesday’s low) may risk a weakness to the 103.75 level.
The Minutes of November FOMC minutes noted that the asset purchases will carry on “over the coming months”. At the same time, “most participants judged that the Committee should update this guidance at some point and implement qualitative outcome-based guidance that links the horizon over which the Committee anticipates it would be conducting asset purchases to economic conditions. ”
However, “a few participants were hesitant to make changes in the near term to the guidance for asset purchases and pointed to considerable uncertainty about the economic outlook and the appropriate use of balance sheet policies given that uncertainty.”
Markets will be generally rather quiet in Asian session today, with Thanksgiving holiday in the US in sight. Risk markets are taking a breather after the earlier rally, so do the selloffs in Dollar, Yen and Swiss Franc. Nevertheless the trio remains the weakest ones for the week. On the other hand, New Zealand and Australian Dollar are the strongest. Sterling is indeed following closely, as traders seem to be betting on some good news out of the Brexit trade negotiations.
Even though there will be no major economic data from Japan, traders should remain careful on price action in US stocks. In the Eurozone we have ECB supervisory board member Kerstin af Jochnick scheduled to peak in a panel discussion at 11:15 GMT. Also, Germany will release the Gfk consumer confidence while EU will release theM3 money supply. ECB will release monetary policy meeting accounts.
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