- Ahead of the Fed's decision, attempts to recover the Japanese yen remain limited.
- Investors are bracing for a 25bps rate cut along with hawkish forward guidance.
- In Japan, the Bank of Japan is expected to keep interest rates unchanged on Thursday.
The US dollar continues its uptrend from early December lows. The reversal from the midpoint of 154.00 was capped at 153.20, and the pair traded sideways on Wednesday awaiting the Fed's decision.
The US central bank is widely expected to cut interest rates by 25 basis points, but subsequent monetary policy statements, and most importantly economic and interest rate forecasts, are likely to have a hawkish tone.
Macroeconomic statistics released this week reveal strong economic activity and booming consumption levels. These numbers are consistent with rising inflation pressures and are likely to prompt policymakers to reduce their monetary easing forecasts next year.
In Japan, on the other hand, the Bank of Japan does not seem to be too concerned about the impact of a strong yen on domestic inflation. Some board members suggested last week that there was no harm in waiting for another rate hike next January. This weighed on the yen, which fell nearly 3% in a sys-day sell-off through Tuesday.
Today's Japanese yen price
The table below shows the percentage change of the Japanese Yen (JPY) against major listed currencies today. The Japanese yen was the strongest against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | australian dollar | new zealand dollar | swiss franc | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.08% | 0.03% | 0.08% | 0.10% | 0.32% | 0.40% | 0.12% | |
| EUR | 0.08% | 0.10% | 0.18% | 0.18% | 0.40% | 0.49% | 0.20% | |
| GBP | -0.03% | -0.10% | 0.06% | 0.08% | 0.30% | 0.38% | 0.10% | |
| JPY | -0.08% | -0.18% | -0.06% | 0.00% | 0.22% | 0.29% | 0.02% | |
| CAD | -0.10% | -0.18% | -0.08% | -0.00% | 0.22% | 0.30% | 0.02% | |
| australian dollar | -0.32% | -0.40% | -0.30% | -0.22% | -0.22% | 0.07% | -0.21% | |
| new zealand dollar | -0.40% | -0.49% | -0.38% | -0.29% | -0.30% | -0.07% | -0.28% | |
| swiss franc | -0.12% | -0.20% | -0.10% | -0.02% | -0.02% | 0.21% | 0.28% |
The heat map shows the percentage change between major currencies. The base currency is selected from the left column and the quote currency is selected from the top row. For example, if you select Japanese Yen from the left column and move along the horizontal line to USD, the percentage change displayed in the box represents JPY (base)/USD (estimate).
