Whatâ€™s next? â€“ USDJPY 26.06.17
The dollar/yen was trading 0.33 percent higher at 111.66 as of 11:38 GMT, with the dollar recovering some strength following last week’s retreatment.
The US dollar index, which tracks the greenback against a basket of multiple currencies, was 0.19 percent higher to trade at 97.13 by the time of this writing.
The American currency received considerable support from the last Federal Reserve monetary policy meeting in June, when it was announced a new interest rate hike of 25 basis points, the second rate adjustment in the year. The regulator also hinted on a third hike.
Last week, attention was directed to a series of speeches from FOMC. Investors looked into them in search for hints on the timing of the next Fed interest rate increase.
There are so far two points of view among Fed representatives: those who believe stopping the rate normalization process will have serious effects on the economy and those who would prefer the regulator waits until the end of the year for a new hike.
Recent economic data hasn’t been supportive of rate movements, especially the consumer price index. Policymakers are worried that inflation won’t be able to meet Fed’s year target.
The pair is now depending basically on expectations for a new rate hike. And therefore, investors will keep an eye on comments from Fed Chairwoman Janet Yellen later this week.
On the data front, durable goods orders will be in focus. A better than expected report is seen as a positive factor for the dollar, which could support bulls to the next resistance.