The greenback shows mixed dynamics against major rivals this week, being cautious ahead of the Fed two-day meeting starting today. The dollar gained some support in the USDJPY pair as the yen was unfazed by the Bank of Japan meeting as the central bank left its policy unchanged and showed it still lacks flexibility. The pair is holding above the 111.000 threshold which could serve as a base for a move higher, probably, even past the 20- and 14-DMAs.
The US currency shifts focus on the upcoming Fed meeting. Despite the central bank is not expected to hike rates this time, market participants will be eagerly waiting for the meeting results as Powell’s rhetoric will set the tone for dollar pairs. The regulator will likely confirm its commitment with further policy tightening, citing solid fundamentals. In this scenario, the USDJPY pair could jump past the 111.75 area, where the 14-DMA lies, with the next target at 112.00.
Today’s PCE report, which is Fed’s favored price growth gauge, will hardly significantly affect the sentiment around the buck as trader will likely look past the release ahead of the key events of the week – Fed decision and NFP employment report.
The US currency shifts focus on the upcoming Fed meeting. Despite the central bank is not expected to hike rates this time, market participants will be eagerly waiting for the meeting results as Powell’s rhetoric will set the tone for dollar pairs. The regulator will likely confirm its commitment with further policy tightening, citing solid fundamentals. In this scenario, the USDJPY pair could jump past the 111.75 area, where the 14-DMA lies, with the next target at 112.00.
Today’s PCE report, which is Fed’s favored price growth gauge, will hardly significantly affect the sentiment around the buck as trader will likely look past the release ahead of the key events of the week – Fed decision and NFP employment report.