The post USD/JPY edges lower near 146.00 on the weaker US Dollar, hawkish BoJ appeared on BitcoinEthereumNews.com.

USD/JPY extends downside around 146.05 in Tuesday’s early Asian session. Rising bets on Fed rate cuts in September exert some selling pressure on the USD and drag the pair lower. The hawkish BoJ remains supported by the JPY against the USD.  The USD/JPY pair trades in negative territory for the third consecutive day near 146.05 during the Asian trading hours on Tuesday. The downtick of the pair is backed by a weaker US Dollar (USD) broadly. Traders will keep an eye on Japan’s National Consumer Price Index (CPI) for July and Federal Reserve (Fed) Chair Jerome Powell’s speech on Friday.  Meanwhile, the USD Index (DXY), a measure of the value of the Greenback relative to a basket of foreign currencies, drops to a multi-day low around 101.85, which creates a headwind for USD/JPY. Investors see the US Fed to start easing the policy in September. According to the CME FedWatch Tool, the markets are now pricing in a nearly 77% chance of a 25 basis points (bps) rate cut in September and expect a 200 basis points (bps) reduction in the next 12 months, though that will depend on incoming data. On the JPY’s front, upbeat Japan’s second-quarter GDP and the potential rate hike by the Bank of Japan (BoJ) in the near term underpin the Japanese Yen (JPY). Kazutaka Maeda, an economist at Meiji Yasuda Research Institute, said that the reports are simply positive overall and “it supports the BoJ’s view and bodes well for further rate hikes, although the central bank would remain cautious as the last rate increase had caused a sharp spike in the Yen.”   Last week, Japanese Economy Minister Yoshitaka Shindo noted that the Japanese economy is forecasted to recover gradually as wages and income improve. Shindo further stated that the government will collaborate…

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Filed under: News - @ August 20, 2024 1:10 am