USDJPY is rising after Federal Reserve decisions

Last Updated on August 27, 2020

USDJPY rose, following the move by Federal Reserve to change its policy on inflation.

On sidelines of “Jackson Hole” event, which is taking place hypothetically, Federal Reserve announced adoption of a policy of “average inflation target” instead of inflation target that it adopted over years at 2%, which allows targeting an average of 2% higher for some time.

Government data in Japan revealed that industrial activity index rose by 6.1% in past month, while analysts’ expectations indicated a rise of 6.3%.

In United States, data showed a decline in number of initial jobless claims during past week to 1,006 million, while expectations indicated a decline of about one million applications. second reading of GDP recorded a contraction of 31.7% in second quarter, while expectations indicated a contraction of 32.5%.

USDJPY

In terms of trading, USDJPY rose by 21:06 GMT by 0.6% to 106.6, and the highest price today was recorded at 106.7, while the lowest price was recorded at 105.6.

USDJPY rose although dollar index declining

On Thursday, dollar index fell by 0.1%, extending its losses for second day in a row, reflecting continued decline in levels of greenback against a basket of major and minor currencies.

This decline comes in light of slowing demand for the currency as best alternative investment, and in light of  positive sentiment that dominates markets, after United States and China confirmed to proceed with the implementation of first phase of trade agreement reached last January.

Professional Trader and Analyst, economist in Financial and Forex marketsince 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
Mohammed Abdelkhalik

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