The Japanese yen is experiencing pressure against the U.S. dollar amid speculation of rate hikes by the Bank of Japan (BoJ) and lower interest rates compared to global counterparts. Despite potential Federal Reserve cuts possibly supporting the yen, U.S. trade tensions keep the dollar strong. As market focuses shift to imminent economic data, particularly Japan's Services PMI, results appearing more favorable could offer a slight lift to the yen's standing.
The Japanese yen remained capped against the U.S. dollar, with limited upside despite speculation of further rate hikes by the Bank of Japan (BoJ).
With Japan's interest rates still relatively low compared to other economies, the yen is likely to stay under pressure.
While market expectations of Federal Reserve rate cuts could help narrow the interest rate gap and offer some support for the yen, concerns around U.S. tariffs on Canada, Mexico and China could favor the dollar.
Market attention now shifts to Japan's Services PMI, due on Wednesday, with consensus expecting a rise to 52.7 in January.
Collection
[
|
...
]