Forex Top Team

Dollar buying in response to US FOMC meeting minutes has stopped, today’s revised US GDP, etc.

The dollar-buying movement following yesterday’s US FOMC minutes has come to a halt. The minutes noted that “several members preferred or could dictate a 50 basis point hike.” Regarding the outlook for the future, there was an upside risk to inflation. The market reacted to dollar buying by showing a hawkish attitude.

However, the dollar-buying movement was held at a milestone level, with the dollar-yen pair staying at just around 135 yen and the euro-dollar pair at around 1.0600. While the Tokyo market is closed for the Emperor’s birthday, the dollar/yen pair is trading in a narrow range at 134.70-134.96 and the euro/dollar pair is trading at 1.0603-1.0628 in Asian markets today.

Following the heavy topside of the US stock market on the previous day, the Asian stock market was also weak today. However, the decline remains relatively small. In the foreign exchange market, the cross-yen exchange rate is showing signs of reluctance to decline, and the current trend is calm.

As the new governor of the Bank of Japan, Mr. Ueda, is scheduled to make a statement tomorrow, we assume that the JPY will move nervously and that buybacks will prevail.

If USDJPY stops near 135.00, it will fall sharply once.

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