FXStreet (Guatemala) – Analysts at Bank of Tokyo Mitsubishi explained that the DXY touched the 100-level this week on Fed rate hike expectations and on ECB monetary easing expectations but USD/JPY dropped to close to 122.00.
Key Quotes:
“Japanese exporters may weigh further on USD/JPY through end-November before hedging activity starts to wane. On the other side Japanese investors may act to support USD/JPY in or around the mid-121.00 level.”
“The most significant event next week will be the ECB meeting. Recent market expectations of extra monetary easing that have helped restore market stability and lift risk appetite have not however lifted USD/JPY.”
“Even after the ECB meeting, USD/JPY may stay in its recent range ahead of the key non-farm payroll release the following day. We do not expect Japan’s CPI and industrial production date for October to impact market expectations for BoJ monetary easing. The last BoJ monetary policy statement and board members’ speeches signal a continued distance from additional monetary easing.”
(Market News Provided by FXstreet)