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.
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.
© 2000-2020. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
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 email@example.com.