Forex Analysis by David Scutt covering: US Dollar Japanese Yen, US Dollar Index Futures, United States 2-Year, United States 10-Year. Read David Scutt's latest article on Investing.com
interest rate decisions landing just hours apart. These twin events overshadow all other data, including the Fed’s preferred inflation measure, the core PCE deflator, released on Friday. How the market reacts to these decisions will likely define USD/JPY's trajectory as we enter 2025.Before digging into the details, here’s next week’s major events calendar for the United States and Japan. Note times shown are US Eastern.
The long-run dot, reflecting the median FOMC estimate for the neutral policy rate, may also shift higher. While members have been cautious about revising these projections, a minor adjustment to 3% or slightly above seems likely. A larger revision to 3.2% or more could trigger a sharp rise in US Treasury yields, with the Japanese yen likely to feel the heat.The 10-year Treasury note future has rolled over decisively, with momentum shifting sharply to the downside.
That said, the US rate outlook remains the dominant driver of USD/JPY movements for now. Once the initial volatility from the BoJ decision fades, expect US Treasury yields to reassert their influence.The impact of higher US Treasury yields on USD/JPY is obvious on the daily chart, with the pair resuming its push higher just as yields bottomed.
Good luck with your trading and thanks to everyone who has read these weekly outlook guides in 2024. Coverage in 2025 will resume midway through January.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events.
US Dollar Index Futures United States 2-Year United States 10-Year
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Trump Tariff Threat Roils Markets: USD Surges, CAD, AUD, NZD SinkForex Analysis by David Scutt covering: Australian Dollar US Dollar, US Dollar Canadian Dollar, New Zealand Dollar US Dollar, US Dollar Index Futures. Read David Scutt's latest article on Investing.com
Read more »
EUR/USD: Fading French Political Turmoil With the White Knight on StandbyForex Analysis by David Scutt covering: Euro US Dollar, United States 10-Year. Read David Scutt's latest article on Investing.com
Read more »
USD/JPY, Gold Face Potential Downside as US Bond Yields Surpass Election PeakMarket Overview Analysis by David Scutt covering: US Dollar Japanese Yen, Gold Spot US Dollar, US Dollar Index Futures, Gold Futures. Read David Scutt's latest article on Investing.com
Read more »
USD/JPY Testing 200DMA With Traders Anticipating Inflation FireworksForex Analysis by David Scutt covering: US Dollar Japanese Yen, United States 5-Year, United States 10-Year. Read David Scutt's latest article on Investing.com
Read more »
Gold, Silver, Bitcoin: Momentum Builds as Bulls Eye BreakoutsMarket Overview Analysis by David Scutt covering: Gold Spot US Dollar, Silver Spot US Dollar, Gold Futures, Silver Futures. Read David Scutt's latest article on Investing.com
Read more »
Gold, Silver Bounce: Is This the Start of Something Bigger?Commodities Analysis by David Scutt covering: Gold Spot US Dollar, Silver Spot US Dollar, Gold Futures, Silver Futures. Read David Scutt's latest article on Investing.com
Read more »