USD/JPY claws back early losses and rebounds to near 150.20 as US Dollar recovers
The USD/JPY pair recovers its early losses and rebounds to near 150.20 during the late European trading session on Friday. The pair bounces back as the US Dollar (USD) licks its wounds despite uncertainty over trade relations between the United States (US) and China remaining intact.
During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, turns flat around 98.35 after recovering from the 10-day low of 98.00 posted earlier in the day.
Trade relations between two biggest powerhouses of the world are going through a rough phase as Washington has imposed additional 100% tariffs on imports from Beijing in response to the announcement of rare earths export control measures.
Additionally, firming Federal Reserve (Fed) dovish bets are also expected to remain a major drag on the US Dollar. According to the CME FedWatch tool, traders have fully priced in a 50-basis-points (bps) reduction in interest rates in the remaining year and see a 19.6% chance that the Fed could cut borrowing rates by 75 bps.
Meanwhile, the Japanese Yen (JPY) trades higher against its peers as US-China trade tensions have increased its safe-haven demand.
On the domestic front, investors remain uncertain over the Bank of Japan’s (BoJ) monetary policy outlook for the remaining year. “I would like to keep gathering more information and scrutinise various data that comes out leading up to our October policy meeting,” Ueda said in a news conference in Washington earlier in the day, according to Reuters.
Source: Fxstreet
