The Bank of Japan showed economic optimism on Friday

2024-09-20

Summary:

The yen rose as the BOJ showed optimism on growth and signaled cautious tightening, while the dollar fell on expectations of more US rate cuts.

EBC Forex Snapshot , 20 Sep 2024

The yen pared its losses on Friday as the BOJ sounded optimistic about growth and signalled it will be judicious about further policy tightening, while the dollar sagged as markets priced in more US rate cuts.

The central bank maintained its view the economy remained on track for a moderate recovery, but said inflation was moderating and on target, leaving traders reluctant to increase bearish bets.

USDJPY

Markets imply a 40% chance the Fed will cut by another 50 bps in November. Rates are seen at 2.85% by the end of 2025, which is now thought to be the Fed's estimate of neutral.

Citibank vs. HSBC Currency Pair Data Comparison
	Citi (as of 16 Sep)		HSBC (as of 20 Sep)
	support	resistance	support	resistance
EUR/USD	1.0857	1.1202	1.1045	1.1233
GBP/USD	1.2812	1.3266	1.3084	1.3399
USD/CHF	0.8375	0.8763	0.8384	0.8559
AUD/USD	0.6618	0.6871	0.6676	0.6895
USD/CAD	1.3441	1.3792	1.3466	1.3649
USD/JPY	140.25	147.13	139.05	146.69

The green numbers in the table indicate that the data has increased compared with the previous time; the red numbers indicate that the data has decreased compared with the previous time; and the black numbers indicate that the data has remained unchanged.

Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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