Wednesday, September 21, 2016

Yen Falls, Eyes on FOMC

The Japanese Yen suffered a fall as the Bank of Japan introduced an updated QQE stimulus in an effort to control the yield curve. Initially, the Yen rose sharply but the real effect was felt minutes later when the actual intentions were clarified.

Currently, USD/JPY is trading at 102.58 which isn't that much of a significant change. Still, the pair is yet to get volatile as the FED is about to announce whether they are raising rates or not. FED Chair Janet Yellen has made multiple remarks that they want to introduce the rates in a very calm manner as to not create excessive volatility and uncertainty in the markets. Rumor has it, they are setting the stage for a December hike and this is the reason the US dollar is strengthening right now.

The FOMC meeting is scheduled for 2PM EDT, and thirty minutes after that, Chair Yellen will be holding a press conference answering questions from the audience.



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