USD/JPY Steady, Focus on Fedspeak
The USD/JPY currency pair moved steadily near the 148.00 level in the early Asian session on Monday (September 22nd). The US dollar strengthened against the Japanese yen after the Federal Reserve (The Fed) cut interest rates at its September meeting, but continued to signal that policy easing would be gradual.
Although the rate cut was in line with market expectations, the Fed has shown no intention of accelerating rate cuts anytime soon. The interest rate projections, known as the "dot plot," show that the US central bank still expects two more cuts before the end of the year.
This has prompted market participants to refrain from taking large positions, awaiting further statements from Fed officials on Monday. If their statements are not overly dovish, the US dollar is likely to remain supported in the short term.
According to Marc Chandler, Chief Market Strategist at Bannockburn Forex, the current situation demonstrates a contrast between the Fed's official statements and the views of individual members. "The statements and concerns about the labor market sound dovish, but the interest rate projections don't actually point to easing," he said.
Source: Newsmaker.id
