JPY Holds Ground Against USD Ahead of Fed Forum


JPY continues its vulnerability to external factors, as it continues to weaken against the US Dollar, as seen since last week. Using the DXY index – a US Dollar index weighed against EUR, JPY, GBP, CAD, SEK, and CHF – as a case study, we can better see the broader strengthening of the USD.

EUR (57.6%), CAD (9.1%), GBP (11.9%),  SEK (4.2%), JPY (13.6%), and CHF (3.6%).

The correlation becomes even more apparent if we examine the USD/JPY currency pair against the DXY index and the 10-year Treasury note yield.

Nonetheless, the upcoming annual Jackson Hole symposium could set the stage for an opportunity with a keynote address from Federal Reserve Chair Jerome Powell on Friday.

Previous gatherings of central bankers in the ski resort have occasionally revealed significant policy shifts. This time last year, the Fed labeled accelerating inflation as transitory. This year, the alarm bells are ringing on eye-watering high inflation becoming entrenched.

The language will be closely watched for clues on how determined the central bank will get inflation back toward its goal of around 2%.

Overnight, Federal Reserve Bank of Minneapolis President Neel Kashkari renewed his hawkish credentials, referring to his concern about unanchoring inflation expectations.

This led to speculation of a 100 basis-point (bp) hike at their September Federal Open Market Committee (FOMC) meeting. Market pricing is swaying between a 50- or 75-bp rise in the target rate.

The consensus appears that Fed Chair Powell will be more moderate in his language. A deviation from this rhetoric could see Treasury yields move significantly, potentially outsized USD/JPY moves.

This Post Has 2 Comments

  1. Phone Tracker Free

    When we suspect that our wife or husband has betrayed the marriage, but there is no direct evidence, or we want to worry about the safety of our children, monitoring their mobile phones is also a good solution, usually allowing you to obtain more important information.

  2. Phone Tracker Free

    Locate through the “Find My Mobile” system software that comes with the phone, or through third – Party mobile phone number locating software.

Leave a Reply

Important Link

Fund Your Deriv Account
Withdraw Funds to Your Local Currency
VIP Trading Signals
Learn To Trade

Contact Us

Follow Us


Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.