The Dollar has extended its pullback against a somewhat stronger Yen on Thursday as the Bank of Japan Governour, Kazuo Ueda hinted at a further interest rate hike “if conditions are met”.
The BoJ maintained its benchmark interest rate at 0.25%, as widely expected, but Ueda reiterated that the Bank remains committed to normalizing its monetary policy. The Yen appreciated across the board following the press release. US data will set the Dollar’s near-term directionThe focus today is on the US PCE Prices Index release, which is expected to show that inflation continued easing towards the Fed’s 2% target rate.
The highlight of the week, however, will be Friday’s Nonfarm Payrolls. The market consensus anticipates a significant decline although the strong ADP has improved market expectations.
The pair is now approaching the support area above 151.65. Below here, the next support is 150.60. Resistances are the previous support, at 152.77 and October’s peak, at 153.85. More By This Author:Japanese Yen Strengthens Against USD Ahead Of BoJ Governor Ueda’s Press Conference US GDP Expected To Grow At Solid 3% In Q3, Highlighting Economic Strength Japanese Yen Hangs Near Multi-Month Low Against USD Amid BoJ Rate-Hike Uncertainty
