The U.S. Dollar-to-Yen, Mired by the President of the Federal reserve, Powell Rate Outlook

USD/JPY-PRICE OUTLOOK: US DOLLAR, THE JAPANESE YEN is BASED ON THE PRESIDENT OF THE FED-POWELL’S NEGATIVE INTEREST RATE POLICY, REMARKS

• The USD/JPY the price action is flirting with a major inflection point, supported by its 50-day moving average
• The US Dollar the volatility is going to increase about a highly anticipated Federal reserve Chairman, Powell’s speech is scheduled for Wednesday,
• FOMC the officials spoke against a negative interest rate policy, but in the united states, the central bank has a history of capitulating to the dovish market expectations

The US Dollar and the The Japanese Yen are two of the best performing currencies year-to-date compared to their main counterparts. The demand for safe-haven currenciesthat stems from feline corona virus of the recession, fear, appears as the main driver of the recent strength of the U.S. Dollar and the Yen.

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USD USD USD USD/CHF-price action trade almost stable since January, however, due to the compensation of the downwind impact on the Dollar-Yen cross. That said, the place is the USD/JPY looks primed for a big project in the near future, as the interest-rate-sensitive FX pairs focuses, a primary influence of a catalyst: the next address of Jerome Powell, the President of the The Federal Reserve.

US DOLLAR EYES OF The OTHER SIDE, THE FED FUNDS FUTURES CONTRACTS, WHILE THE FEEDBACK COMMENT ON IT

The US Dollar’s outlook is now clouded by the circulation of the uncertainty surrounding the forward guidance of the key FOMC officials, but that could soon change, with the President of the Fed-Powell is scheduled to deliver remarks on Tuesday, May 13, at 13:00 UTC.

Check out the DailyFX-Economic Calendar for a detailed list of the scheduled event risk, as well as the dates of the releases!

President of the federal reserve, and secretary Powell is widely expected to provide feedback on whether the u.s. central bank, has any appetite for a ” negative interest rate policy, or IT. This was as a result of the implied rates of the Fed turning negative last week, according to interest rate futures contracts for December of the year 2020, given that the obligations of traders to ramp up the dovish paris.

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Several Federal Reserve officials, like Robert Kaplan, and James Bullard, had already expressed their opposition this week to the implementation of negative interest rates in the united States. However, the various FOMC members, in addition to the Chairman of the Federal reserve, and secretary Powell have alluded to the possibility that the central bank may need to do more in terms of monetary stimulus is provided to keep the functioning of financial markets and the u.s. economy is supported.

The USD/JPY PRICE CHART, DAILY TIME FRAME (15 FEBRUARY TO 12 MAY 2020)

Seeing that the US Dollar is the volatility of the currencies could accelerate over the next few trading sessions on the market participants to react to the latest language of the President of the Federal reserve-Powell’s spot is the USD/JPY price action is, in consequence, appears at risk. This is also indicated by the USD/CHF implied volatility, which was just clocked at two weeks for the night can be heard.

During this time, the spot is the USD/JPY has been perched slightly below its The 50-day moving average the thickness of the 107.50 price. This area of confluence is also noted by the 38.2% retracement Fibonacci of March violent trading range. The USD/JPY prices, however, have the potential to crown the whole, the technical experts level, considering that the Fed Chairman, and secretary Powell could push IT speculation.

This, in turn, could cause the other hand, the Fed funds rate futures tick the upper box, and is intended to provide a real boost to the U.S. Dollar. On the other hand, the US Dollar could take a severe drop if Powell takes a more flexible approach, and leaves the door open for the FOMC to slash the target Fed funds rate into negative territory.

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— Written by Rich DvorakAnalyst for the DailyFX.com

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