The USD/JPY pair is down to 149.400 despite the US Dollar (USD) strengthening during Asian trading on Thursday. Later on Thursday, US retail sales data will come to the fore, which is estimated to rise to 0.3% in September from 0.1% in the previous reading.
The US economic data showed a resilient economy, with inflation rising slightly more than expected in September. This, in turn, could boost the US Dollar against the Japanese Yen (JPY). LSEG calculations put the probability of a 25 basis points (bps) rate cut in November at nearly 100%, while the probability of the Fed pausing and keeping the federal funds rate in the target range of 4.75-5.0% is just 0.2%.
Nevertheless, ongoing geopolitical risks and uncertainty surrounding the U.S. election could strengthen safe-haven flows, which would favor the yen. A plan for Israel's response to an Iranian attack this month is ready, CNN reported. U.S. officials expect it to happen before the U.S. presidential election. Prime Minister Benjamin Netanyahu said separately that Israel opposes a “unilateral ceasefire” in the war with Iran-backed Hezbollah in Lebanon.
On Friday, investors await national consumer price index (CPI) data for September for a fresh boost. The CPI excluding fresh food is expected to fall to 2.3% in September from 2.8% in August.
Trade recommendation: Watching the level of 150.000, when fixing above consider Buy positions, when rebounding consider Sell positions.
The US economic data showed a resilient economy, with inflation rising slightly more than expected in September. This, in turn, could boost the US Dollar against the Japanese Yen (JPY). LSEG calculations put the probability of a 25 basis points (bps) rate cut in November at nearly 100%, while the probability of the Fed pausing and keeping the federal funds rate in the target range of 4.75-5.0% is just 0.2%.
Nevertheless, ongoing geopolitical risks and uncertainty surrounding the U.S. election could strengthen safe-haven flows, which would favor the yen. A plan for Israel's response to an Iranian attack this month is ready, CNN reported. U.S. officials expect it to happen before the U.S. presidential election. Prime Minister Benjamin Netanyahu said separately that Israel opposes a “unilateral ceasefire” in the war with Iran-backed Hezbollah in Lebanon.
On Friday, investors await national consumer price index (CPI) data for September for a fresh boost. The CPI excluding fresh food is expected to fall to 2.3% in September from 2.8% in August.
Trade recommendation: Watching the level of 150.000, when fixing above consider Buy positions, when rebounding consider Sell positions.
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More analytical information and promotions on FreshForex website cutt.ly/mw3aPjui
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.