USD/JPY Forecast: Eyes on BoJ Commentary Amid Weaker Japanese Yen Concerns
==========
On Thursday, June 20, Bank of Japan commentary warrants investor attention as the USD/JPY hovers around the 158 level. Recent economic indicators supported the BoJ decision to leave interest rates unchanged on June 14. However, the lack of commitment to hiking interest rates in the near term has dampened buyer appetite for the Japanese Yen. BoJ Deputy Governor Ryozo Himino recently spoke about the impact of a weaker Yen on the economy, "Exchange-rate fluctuations affect economic activity in various ways. It also affects inflation in a broad-based and sustained way, beyond the direct impact on import prices." The BoJ may wait for inflation and services PMI numbers on Friday before considering its next steps. Nevertheless, investors should monitor BoJ commentary. Later in the session on Thursday, the US labor market and manufacturing sector will be in focus. Economists forecast the Philly Fed Manufacturing Index to remain steady at 4.5. An unexpected slide in the Index could raise concerns about a US hard landing. However, the numbers may not materially influence the Fed rate path. The manufacturing sector contributes less than 30% to the US economy. On the other hand, US jobless claims data could influence investor expectations of a September Fed rate cut. Economists forecast initial jobless claims to fall from 242k to 235k in the week ending June 15. Lower-than-expected numbers could temper investor expectations of a Fed rate cut. Near-term trends for the USD/JPY will hinge on BoJ chatter, inflation numbers from Japan, and Services PMIs from Japan and the US. An increase in service sector activity in Japan and inflation figures exceeding expectations could prompt the BoJ to consider initiating rate hike discussions.
#Usd/jpy #BankOfJapan #JapaneseYen #InterestRates #EconomicIndicators #Inflation #ServicesPmi #UsLaborMarket #ManufacturingSector #PhillyFedManufacturingIndex #JoblessClaims #FedRateCut
https://www.fxempire.com/forecasts/article/usd-jpy-forecast-eyes-on-boj-commentary-amid-weaker-japanese-yen-concerns-1439715
FX Empire /
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2024-06-20 01:26:37
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wss://relay.damus.ioPublished at
2024-06-20 01:26:37Event JSON
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"content": "USD/JPY Forecast: Eyes on BoJ Commentary Amid Weaker Japanese Yen Concerns\n==========\n\nOn Thursday, June 20, Bank of Japan commentary warrants investor attention as the USD/JPY hovers around the 158 level. Recent economic indicators supported the BoJ decision to leave interest rates unchanged on June 14. However, the lack of commitment to hiking interest rates in the near term has dampened buyer appetite for the Japanese Yen. BoJ Deputy Governor Ryozo Himino recently spoke about the impact of a weaker Yen on the economy, \"Exchange-rate fluctuations affect economic activity in various ways. It also affects inflation in a broad-based and sustained way, beyond the direct impact on import prices.\" The BoJ may wait for inflation and services PMI numbers on Friday before considering its next steps. Nevertheless, investors should monitor BoJ commentary. Later in the session on Thursday, the US labor market and manufacturing sector will be in focus. Economists forecast the Philly Fed Manufacturing Index to remain steady at 4.5. An unexpected slide in the Index could raise concerns about a US hard landing. However, the numbers may not materially influence the Fed rate path. The manufacturing sector contributes less than 30% to the US economy. On the other hand, US jobless claims data could influence investor expectations of a September Fed rate cut. Economists forecast initial jobless claims to fall from 242k to 235k in the week ending June 15. Lower-than-expected numbers could temper investor expectations of a Fed rate cut. Near-term trends for the USD/JPY will hinge on BoJ chatter, inflation numbers from Japan, and Services PMIs from Japan and the US. An increase in service sector activity in Japan and inflation figures exceeding expectations could prompt the BoJ to consider initiating rate hike discussions.\n\n#Usd/jpy #BankOfJapan #JapaneseYen #InterestRates #EconomicIndicators #Inflation #ServicesPmi #UsLaborMarket #ManufacturingSector #PhillyFedManufacturingIndex #JoblessClaims #FedRateCut\n\nhttps://www.fxempire.com/forecasts/article/usd-jpy-forecast-eyes-on-boj-commentary-amid-weaker-japanese-yen-concerns-1439715",
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