The divergent messages investors are getting from the globe’s central banks, regarding monetary policy and inflation specifically, helped push the US Dollar higher versus the Japanese Yen. The appearance of a number of key officials from the Federal Reserve Bank are also likely to be scrutinized for any divergence from the unexpectedly hawkish rhetoric of Janet Yellen, the head of the US central bank, who last week expressed confidence in the likelihood of additional rate hikes in 2017. Despite that, markets continue to be somewhat wary of that real possibility, despite her positive outlook, and will watch for clues from the FOMC members to legitimize their thinking.
As reported at 11:00 am (BST) in London, the USD/JPY was trading at 110.96 Yen, a gain of 0.27%; the pair had earlier hit a peak of 111.214 Yen, while the session low stands at 110.724 Yen. The EUR/JPY was higher at 124.2499 Yen, a gain of 0.33%; the pair’s range for the session is from a trough of 124.0100 Yen to a peak of 124.5020 Yen.
Line Up for Fed Hawks and Doves
The speaking schedule for the FOMC members begins today with Bill Dudley, President of the New York Fed, who is a hawk and follows Yellen’s lead. Then, later today, markets will hear from Charles Evans, considered a solid dove, of the Chicago Branch of the Federal Reserve. Tomorrow, the Vice Chairman of the Board of Governors, Stanley Fisher, will offer his view on the economy; Fisher has a decidedly hawkish outlook. Robert Kaplan of the Dallas Fed will also be speaking on Tuesday and is also a well known hawk.