Currency News

Daily Exchange Rate Forecasts & Currency News

US Dollar Japanese Yen Exchange Rate Predictions: Potential for Major US Gains

December 21, 2016 - Written by Ben Hughes

USD JPY Exchange Rate Update: Losses for USD Follow Trump Hints of Terror Response



The US Dollar Japanese Yen exchange rate has been generally poor today, with the pairing declining due to uncertainties present among US investors.

The latest domestic news has mainly focused on President-Elect Trump, who has stated in response to recent terror attacks that a change of thinking is required.

Just what this translates to, particularly with regard to US immigration policies towards minorities, has concerned investors, thereby reducing USD interest.

USD JPY Exchange Rate Predictions: Potential for Significant Rebound on Final US GDP Stats This Week



Although the pre-Christmas week is drawing to a close, the US Dollar still has a chance of rallying against the Japanese Yen before the weekend.

Thursday afternoon’s US data will include the November durable goods orders result, which has a concerning slump from 4.8% to -0.6% forecast.

Much more positively, however, the final Q3 GDP growth rate stats are expected to show a quarterly jump from 1.4% to 3.2%.

Advertisement
Closing pre-Christmas trading on Friday will be the November new home sales results, which have upwards movement from 563k to 567k predicted.

Japanese Yen US Dollar Trading Improves as BoJ Optimism Rubs Off on Investors



The Japanese Yen US Dollar exchange rate has risen by around 0.5% today, in the aftermath of the Bank of Japan (BoJ) leaving interest rates at -0.1% on Tuesday.

The BoJ had largely been expected to take this action, which helped to keep the Yen stable against the US Dollar in the immediate and longer aftermath.

The BoJ also boosted Japanese Yen demand by upgrading its outlook on 2017’s Japanese economic performance, something not done for 21 months.

Japanese Yen US Dollar Exchange Rate Forecast: Christmas Day BoJ Minutes could Strengthen JPY Demand



With no major Japanese data due until near-midnight on Christmas Day, Japanese Yen movements are largely expected to remain under the control of the more active US Dollar.

The December 25th news will be high-impact - minutes from Tuesday’s BoJ interest rate decision. Economic outlooks were revised upwards at that time, so an elaboration on this point could offer further support to the JPY USD pairing.

Looking further ahead, Boxing Day (December 26th), is set to bring Japanese inflation rate figures for November, which have potentially damaging downward shifts forecast.

Like this piece? Please share with your friends and colleagues:

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.


TAGS: Daily Currency Updates

Comments are currrently disabled