USD/JPY strengthens following the FOMC meeting.

Create at 2 days ago (Dec 19, 2024 21:55)

The Bank of Japan's policy announcement is expected to provide further signals regarding the future trajectory of its interest rate hikes, causing significant volatility in the yen's value.

Investors anticipate that the Bank of Japan will almost certainly raise interest rates further in 2025. This expectation is driven by rapidly increasing wages in Japan, which have pushed inflation above the central bank's 2% target for over two years.

However, declining household spending and weaker personal consumption data indicate that Japan's economic recovery is slowing down. Additionally, BoJ policymakers are waiting for the November Consumer Price Index report and the start of President Donald Trump’s administration before implementing the next interest rate hike.

Source: Fxstreet

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