Good and bad news | 21 Tháng Chín 2020

21 Tháng Chín 2020, USD/JPY

Good and bad news

USDJPY trading plan:

U.S. consumer sentiment improved in early September. The University of Michigan said its consumer sentiment index rose to 78.9 in the first half of this month from a final reading of 74.1 in August. U.S. economy is recovering. The Federal Reserve to pledge to keep rates near zero until at least the end of 2023, but the central bank also called for more fiscal help from Congress, which still looks unlikely. This is a positive signal for the dollar. The yield on short-term US Treasury bonds is within the range of the Fed discount rate of 0-0.25%, and with the growth of inflation, the negative real yield increases. Now inflation is 1.3%, and the yield on bonds is 0.14% - the negative yield has increased and is 1.16%. Investors need positive real profitability, they want to earn, but in American bonds this will not be possible, which contribute to a decrease in the dollar exchange rate.

Trading recommendation: range 104.01 -105.01.

David Johnson
Analyst of «FreshForex» company
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