"The recent decline of the USD/JPY pair toward the 152.86 level was not merely a technical move in the currency market, but rather a direct reflection of a deeper shift in global monetary policy dynamics, where the U.S. Federal Reserve's cautious tone intersects with growing signs of stability in the Japanese economy. From my economic perspective, monitoring the behaviour of major currencies at this stage"
"After a modest 25-basis-point rate cut, Fed Chair Jerome Powell made it clear that further easing is not a given - a statement that sent mixed signals to the markets. On one hand, it reflects the Fed's concern about slowing growth, and on the other, it underscores its unwillingness to jeopardize the dollar's strength amid inflation that remains above target."
The USD/JPY decline to about 152.86 reflects shifts in global monetary dynamics as Federal Reserve caution meets improving Japanese fundamentals. The Fed delivered a modest 25-basis-point cut while signaling that further easing is not assured, prompting investors to lower expectations for December and reducing dollar risk appetite amid a U.S. government shutdown and delayed data. The dollar's weakness stems from these mixed signals and pricing adjustments. Japan's economy shows resilience with 1.9% year-on-year cash earnings growth and a Jibun Bank Services PMI of 53.1, indicating sustained services-sector expansion and stronger household purchasing power. The Bank of Japan's calibrated policy supports the yen's gradual safe-haven resurgence.
Read at London Business News | Londonlovesbusiness.com
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