Rising tensions in the Middle East are hitting the yen exchange rate | 08 August 2024

08 August 2024, USD/JPY

Rising tensions in the Middle East are hitting the yen exchange rate

Event to watch out for today:

15:30 GMT+3. USD - Unemployment Claims

USDJPY:

The Japanese Yen (JPY) continues to lose ground against the US Dollar (USD) on Thursday after correcting intraday gains. This decline can be attributed to comments from Bank of Japan (BoJ) Deputy Governor Shinichi Uchida, who said on Wednesday: "We will not raise rates when markets are unstable," according to Reuters.

A summary of the BoJ's views from its monetary policy meeting on July 30 and July 31 showed that economic activity and prices are developing in line with BoJ expectations, according to several members. Bank of Japan members set a neutral rate at "at least around 1%" as a medium-term target.

The safe-haven yen's decline may be limited due to increased risk-off sentiment amid rising tensions in the Middle East. According to two US intelligence officials, Iran and its allies are preparing for possible retaliation against Israel following Tehran's recent assassinations of a top Iranian Hezbollah military commander in Lebanon and a senior Hamas leader, CNN reported.

The U.S. dollar (USD) is facing challenges as traders expect a deeper rate cut by the U.S. Federal Reserve (Fed) in September. According to the CME FedWatch tool, the probability of a 50 basis point (bps) Fed interest rate cut in September is 72.0%, up from 11.8% a week earlier.

Trading recommendation: Trade mainly with Buy orders from the current price level.

Our company provides an opportunity to earn income not only from your trading. By attracting clients within the affiliate program, you can get up to $30 per lot!

David Johnson
Analyst of «FreshForex» company
Agree with the review?
Traders' opinion:
Close
ปูมบันทึกอยู่ใน
Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .