The dollar continued to face downside pressure following the release of the FOMC meeting minutes. Concerns were raised by FOMC members over potential labour market deterioration, with the majority of the members signalling that a September rate cut might be appropriate. This dovish narrative provided buoyancy to the equity market, as all major U.S. indexes gained in the last session.
The USD/JPY pair hovers around 152.50, just above a three-month low, as traders anticipate the Bank of Japan's policy decision, expecting a 10-basis-point rate hike and bond-buying tapering, which supports the Yen. A slight recovery in the US Dollar has paused the pair's rise, with the Dollar Index near 104.50 ahead of the Federal Reserve's meeting, where rates are expected to stay unchanged but with dovish guidance.
Navigating Uncertainty: Insights for Traders & Investors
WikiFXWikiFXWikiFXWikiFXWikiFXWikiFXWikiFXWikiFXWikiFXWikiFX