Predict the direction of USD on September 25, 2023
The hawkish interest rate outlook from the Fed has caused US Treasury bond yields to rise, while boosting demand for the greenback.
Chicago Fed President Austan Goolsbee said on September 25 that inflation is still higher than the Fed's 2% target. This is still a bigger risk than the central bank's tightening policy that could slow down the growth momentum of the US economy.
Meanwhile, the Japanese Yen continued to slide after the Bank of Japan (BoJ) decided to maintain extremely low interest rates at last week's policy meeting, and pledged to continue supporting the economy until Inflation reaches the 2% target in a sustainable way.
“According to BoJ Governor Kazuo Ueda, there are still no signs of sustained stable inflation so the BoJ will patiently continue monetary easing under the current framework,” said Esther Reichelt, analyst at Commerzbank. Accordingly, the USD reached an 11-month high against the Japanese yen, currently at 148.97 yen.
In the opposite direction, the Euro fell to 1.05750 USD, the lowest level since March 16. The Euro is weakening against the USD as the market believes that the European Central Bank may have ended its interest rate hike cycle.
Chicago Fed President Austan Goolsbee said on September 25 that inflation is still higher than the Fed's 2% target. This is still a bigger risk than the central bank's tightening policy that could slow down the growth momentum of the US economy.
Meanwhile, the Japanese Yen continued to slide after the Bank of Japan (BoJ) decided to maintain extremely low interest rates at last week's policy meeting, and pledged to continue supporting the economy until Inflation reaches the 2% target in a sustainable way.
“According to BoJ Governor Kazuo Ueda, there are still no signs of sustained stable inflation so the BoJ will patiently continue monetary easing under the current framework,” said Esther Reichelt, analyst at Commerzbank. Accordingly, the USD reached an 11-month high against the Japanese yen, currently at 148.97 yen.
In the opposite direction, the Euro fell to 1.05750 USD, the lowest level since March 16. The Euro is weakening against the USD as the market believes that the European Central Bank may have ended its interest rate hike cycle.
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