Yahoo Finance USD/JPY Fundamental Daily Forecast – Trader Focus Will Be On Fed Speakers
The Dollar/Yen is trading higher on Monday, but the Forex pair is giving back earlier gains. The early price action suggests investors will be monitoring closely the price action in U.S. equity and Treasury markets.
At 1200 GMT, the USD/JPY is trading 113.085, up 0.047 or +0.03%.
U.S. Treasury yields weakened on Monday, driving up U.S. government debt prices, as investors turned their attention to the U.S. Federal Reserve, where three FOMC members are scheduled to speak.
The yield on the benchmark 10-year Treasury Note was lower at around 2.472 percent, while the yield on the 30-year Treasury bond was down at 2.803 percent.
U.S. stock indexes are called mixed with Dow futures trading higher in the pre-market session and the S&P 500 Index and NASDAQ-100 futures contracts drifting lower after giving back earlier gains.
Forecast
Lower Treasury yields and mixed-to-lower equity markets could pressure the USD/JPY today. A reversal in yields and stocks will be supportive.
The catalyst behind the price action today is likely to be the Fed speakers. Hawkish commentary will be supportive for the USD/JPY. Dovish commentary could encourage long investors to book profits after last week’s rally.
In Georgia, Atlanta Fed President Raphael Bostic may deliver remarks on the economic outlook and monetary policy, when speaking at the Rotary Club of Atlanta.
Both San Francisco Fed President John Williams and Boston Fed President Eric Rosengren will be delivering separate remarks at Brookings institution in Washington.
This article was originally posted on FX Empire
