The post USD/JPY grinding back towards 147.00 ahead of US CPI inflation, Fed rate outlook appeared on BitcoinEthereumNews.com.

The USD/JPY is recovering further ground after last week’s plunge, but Fed looms ahead. Markets are rebalancing after last week’s Yen rocket sparked by hawkish BoJ comments. Fed rate call expected to hold flat, investors to peer into FOMC statement and interest rate forecast. The USD/JPY has pared back the majority of losses from last week’s Bank of Japan (BoJ)-fueled plunge, pulling back from four-month lows below 142.00 to aim squarely at the 147.00 handle. The pair has walked back around 80% of last Thursday’s declines that were kicked off by an unexpectedly hawkish showing from BoJ Governor Kazuo Ueda, who noted that the Japanese central bank could be set to begin exploring tighter monetary policy as long as wages continue to show firm growth. Markets completely front-ran the BoJ statements, sending the Japanese Yen (JPY) soaring across the entire FX market space. The USD/JPY plunged nearly 4% top-to-bottom last week, but markets are scaling back their bets as investors pivot to face upcoming US Consumer Price Index (CPI) inflation and an update to the Federal Reserve’s (Fed) Dot Plot of interest rate forecasts. Fed to hold rates, markets to hinge on dot plot adjustments With Monday making a thin showing on the economic calendar, markets are focusing on Tuesday’s upcoming US CPI inflation print, which is expected to diverge between monthly and annualized price growth. November’s MoM CPI inflation is forecast to tick upwards from 0.0% in October to 0.1%, and YoY is expected to tick downwards from 3.2% to 3.1%.  With near-term inflation seen climbing slightly, an unexpected rebound in inflation on the near tail of the curve would undercut broad-market expectations of Fed rate cuts to come sooner rather than later, destabilizing risk appetite currently underpinning the broader market. Wednesday kicks off with the Japanese Tankan Large…

---

Filed under: News - @ December 12, 2023 2:20 am