USD/JPY Forecast: Fed Rate Path, Consumer Confidence, and BoJ Intervention Dynamics
==========
On Friday, the Bank of Japan and the Japanese government will continue to impact buyer demand for the USD/JPY. Holding onto the 153 handle, the weaker Yen could incentivize the Japanese government to intervene. Rising import prices, stemming from the Yen slump, would drive inflation higher, affecting household spending and the economy. Private consumption accounts for over 50% of the Japanese economy. US consumer confidence figures for April will garner investor attention. Economists expect the Michigan Consumer Sentiment Index to decline from 79.4 to 79.0. Weaker-than-expected numbers could influence investor sentiment toward the Fed rate path. A deterioration in consumer confidence could impact consumer spending. Downward trends in consumer spending would dampen demand-driven inflation. A softer inflation outlook could enable the Fed to cut interest rates. Moreover, downward trends in consumer spending would test bets on the US avoiding an economic recession. Private consumption contributes over 65% to the US economy. Near-term trends for the USD/JPY hinge on US consumer sentiment numbers, Fed forward guidance, and the Japanese government.
#Usd/jpy #BankOfJapan #JapaneseGovernment #Yen #Inflation #HouseholdSpending #Economy #ConsumerConfidence #MichiganConsumerSentimentIndex #FedRatePath #ConsumerSpending #InflationOutlook #InterestRates #Recession #PrivateConsumption
https://www.fxempire.com/forecasts/article/usd-jpy-forecast-fed-rate-path-consumer-confidence-and-boj-intervention-dynamics-1422996
FX Empire /
npub1lj…9zjdc
2024-04-12 01:46:46
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npub1ljmz9hjq6kkwm5ltqfc6dpw9ytalhtnf7sgp4r75dqvtsq2wz9sqp9zjdcSeen on
wss://nos.lolPublished at
2024-04-12 01:46:46Event JSON
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"content": "USD/JPY Forecast: Fed Rate Path, Consumer Confidence, and BoJ Intervention Dynamics\n==========\n\nOn Friday, the Bank of Japan and the Japanese government will continue to impact buyer demand for the USD/JPY. Holding onto the 153 handle, the weaker Yen could incentivize the Japanese government to intervene. Rising import prices, stemming from the Yen slump, would drive inflation higher, affecting household spending and the economy. Private consumption accounts for over 50% of the Japanese economy. US consumer confidence figures for April will garner investor attention. Economists expect the Michigan Consumer Sentiment Index to decline from 79.4 to 79.0. Weaker-than-expected numbers could influence investor sentiment toward the Fed rate path. A deterioration in consumer confidence could impact consumer spending. Downward trends in consumer spending would dampen demand-driven inflation. A softer inflation outlook could enable the Fed to cut interest rates. Moreover, downward trends in consumer spending would test bets on the US avoiding an economic recession. Private consumption contributes over 65% to the US economy. Near-term trends for the USD/JPY hinge on US consumer sentiment numbers, Fed forward guidance, and the Japanese government.\n\n#Usd/jpy #BankOfJapan #JapaneseGovernment #Yen #Inflation #HouseholdSpending #Economy #ConsumerConfidence #MichiganConsumerSentimentIndex #FedRatePath #ConsumerSpending #InflationOutlook #InterestRates #Recession #PrivateConsumption\n\nhttps://www.fxempire.com/forecasts/article/usd-jpy-forecast-fed-rate-path-consumer-confidence-and-boj-intervention-dynamics-1422996",
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