The US Dollar edged higher versus the Japanese yen and stayed close a 4-week peak versus the common currency Euro as policy meetings for the Bank of Japan and Federal Reserve Bank loom. In both cases, investors anticipate that the outcomes will be positive for the greenback. The Fed is expected to paint a brightening picture in the wake of improved economic news and a recovery in June’s labor figures. On the flip side, estimates are still being thrown about as to how much more easing the Bank of Japan is likely to float in an effort to stimulate a stagnant Japanese economy.
As reported at 10:56 am (BST) in London, the USD/JPY was trading at 106.2770 Yen, up 0.148%; the pair ranged from a low of 106.0150 Yen to a high of 106.7180 Yen in today’s trading. The EUR/JPY was also higher at 116.756 Yen, up 0.14%.
Outlook for Yen Bleak
According to one strategist in London, there is a greater expectation for the BOJ to push numerous measures through, including a likely rate of 20 basis points and an additional ¥3 trillion in Quantitative Easing. Analysts say that for the Yen to push above the 110 Yen level against the Dollar, efforts will need to come from more than just the monetary side of the equation.