The US currency continues to strengthen along the broad market, due to the apparent cooling of the market enthusiasm about what the Fed will go to the aggressive reduction of key interest rates. dollar sellers clearly have lost the initiative two days ago after the president of the Federal Reserve Bank of St. Louis James Bullard said that the rate cut by 50 basis points in July "is excessive", ie inadequate current needs of the economy.
Disappointed and comments of Fed Chairman Jerome Powell, who for some reason, again emphasized the fact that the Fed "insulated from short-term political pressure." Market participants speculated that the US regulator can not follow the call of US President Trump, insisting on the need for a sharp decline in interest rates. Nevertheless, despite these comments the likelihood that the Fed will still cut rates in July, more than 70%. For this reason, the purchase of US currency is unlikely to be prolonged. Today at 15:30 Moscow time will be published GDP data for the CSHA and the index for personal consumption expenditures. If reports disappoint, the probability of monetary easing will only rise. In addition, the pressure on the pair of USDJPY at any time may have an unfavorable background, coupled with an increase in tension in the Middle East,
USDJPY SellLimit 108,20 TP 106,20 SL 108,60
Analytical reviews and comments reflect the personal opinion of the authors and are not a recommendation to trade. Author Artem Deev trader analyst AMarkets