FXStreet reports that Jane Foley Senior, FX Strategist at Rabobank, notes that the market will be digesting the messages from Chinese and US economic data this week to decide whether ‘peak growth’ is a concern or whether it is too early to rein in risk appetite. While USD/JPY has recovered from last week’s lows, the existence of these concerns has likely capped upside potential for now, he suggests.
“Our 1 and 3 month USD/JPY forecasts stand at 111.00. This assumes no sharp retrenchment of risk appetite through the summer which would benefit the JPY.”
“We expect the debate regarding the potential for Fed tightening to keep the USD well supported while a dovish BoJ is likely to keep the carry trade alive for JPY based investors.”
“If US inflation is firm enough to keep alive the debate about the possibility of a Fed rate hike in late 2020, USD/JPY is likely to edge higher.”
© 2000-2022. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at firstname.lastname@example.org.