Japanese Yen Faces Uncertainty After BoJ Comments
Today's markets analysis on behalf of George Khoury Global Head of Education and Research at CFI
August 8, 2024 (Investorideas.com Newswire) The Japanese yen could be exposed to volatility as traders react to the developments in the market. The yen could come under pressure as the Bank of Japan takes a more cautious stance regarding its monetary policy after the market's selloff earlier this week. The change in tone could fuel some uncertainty. The latter could continue to affect yields on Japanese treasuries which could continue to fall if the Bank of Japan maintains a dovish tone. In this regard, traders could continue to monitor any clues about future rate changes. The unwinding of a significant portion the carry trade added to the risks in the market.
Looking ahead, today's report on US initial jobless claims for the week ending August 3 is expected to show a drop to 240K from 249K. An increase in jobless claims could weigh on the dollar and fuel the concerns about a recession in the US and drive more risks in the forex market. Market participants are also focusing on the US consumer price inflation report for July, which is due next week, and on comments from Fed Chair Jerome Powell at the Jackson Hole Economic Policy Symposium from August 22 to August 24, which will have a big impact on market sentiment and bets on the Fed's interest rate cuts trajectory this year.
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