The post Japanese Yen may find limited downside due to investors’ caution ahead of BoJ decision appeared on BitcoinEthereumNews.com.

The Japanese Yen edges lower as the BoJ is widely expected to leave interest rates unchanged on Friday. The downside of the Japanese Yen could be limited as investors’ caution prevails ahead of the BoJ policy decision on Friday. CME FedWatch Tool indicates that the likelihood of a Fed rate cut in September decreased to 61.5, down from 69.4% a week earlier. The Japanese Yen (JPY) retraces its recent gains on Thursday as the US Dollar (USD) advances following a hawkish hold from the US Federal Reserve (Fed), boosting the USD/JPY pair. The Federal Open Market Committee (FOMC) left its benchmark lending rate in the range of 5.25%–5.50% for the seventh consecutive time in its policy meeting on Wednesday, as widely anticipated. The Japanese Yen may see limited downside as caution prevails ahead of the Bank of Japan’s (BoJ) policy decision on Friday. While the BoJ is widely expected to leave interest rates unchanged, traders will be closely monitoring any announcements regarding a potential reduction in the central bank’s monthly bond purchases. The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, recovers its recent losses. This recovery can be attributed to the hawkish stance of the Federal Reserve. FOMC policymakers now anticipate just one rate cut this year, down from the three that were projected in March. The CME FedWatch Tool indicates that the likelihood of a Fed rate cut in September by at least 25 basis points has decreased to 61.5, down from 69.4% a week earlier. Investors await the US weekly Initial Jobless Claims and Producer Prices Index (PPI) on Thursday to gain further impetus on economic conditions in the United States (US). Daily Digest Market Movers: Japanese Yen declines as Fed adopts a hawkish stance In a press conference…

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Filed under: News - @ June 13, 2024 5:24 am