The USDJPY pair ticked higher on Wednesday and was trading
near the 114 level during the US session as rising stocks and rising yields
spurred demand for the USDJPY pair.
Traders paid attention to today’s US GDP preliminary data
for the third quarter, which came out at 3.5% and sent a strong message, that
the US economy is still outpacing other G7 countries. However, most economists expect
the economic activity to slow down over the next quarters as Trump’s tax cuts
positive influence on the GDP growth will fade out. Moreover, the GDP price
index remained at 1.7% on the yearly basis.
Later in the day, the Fed’s chair Jerome Powell is due to
deliver a speech titled "The Federal Reserve's Framework for Monitoring
Financial Stability" at The Economic Club of New York. The market will
look for any clues in his remarks about a possible pause in the rate hikes, due
to deteriorating economic numbers recently.
However, on Tuesday Mr. Richard Clarida backed the gradual
rate hikes approach, despite the recent slump on the stock markets. Thus,
today’s market hopes for a dovish Powell might be overrated and the greenback
could continue higher, should Powell confirm the hawkish bias at the Fed.
US yields moved higher today and it would appear that the
latest decline might be over, with the whole yield curve rising on Wednesday.
Disclaimer:
Analysis
and opinions provided herein are intended solely for informational and
educational purposes and don't represent a recommendation or an investment
advice by TeleTrade. Indiscriminate reliance on illustrative or informational
materials may lead to losses.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.