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FOMC Minutes Expected to Offer Limited Insights on USD Policy
Developing
In Short: TD Securities analysts suggest that the upcoming September Federal Open Market Committee (FOMC) minutes will offer limited fresh insights into US monetary policy, given the release of subsequent employment and personal consumption expenditure (PCE) data.
The USD/JPY currency pair is currently struggling near 158.00, moving away from its recent high as the US Dollar retreats from 17-month highs.
The US Dollar's decline is attributed to profit-taking ahead of the crucial US Nonfarm Payrolls report, which is expected to provide more definitive guidance on the future path of interest rates.
Meanwhile, the Australian Dollar is gaining support from renewed expectations of a November interest rate hike, driven by elevated global yields and inflation risks.
The precious metals market is experiencing mixed price action, with selling pressure on the US Dollar impacting gold and silver prices as investors assess the latest employment data.
What's still developing
- USD/JPY is struggling for fresh impetus near 158.00, moving away from the top end of its weekly range in the Asian session on Friday, after hotter-than-expected Tokyo CPI and amid a broad US Dollar retreat.
- TD Securities analysts characterize the upcoming September FOMC minutes as largely outdated given subsequent employment and PCE data.
- The minutes are expected to show disagreement over how much further tightening is needed, but broad consensus that policy should remain more restrictive.
Sources
- FXStreetlink