USD/JPY retreats modestly, looks to close below 110.00 after FOMC Minutes
- USD/JPY remains on track to end the second straight day in the positive territory.
- US Dollar Index stays above 93.00 after edging lower on FOMC Minutes.
- 10-year US Treasury bond yield clings to modest daily gains.
The USD/JPY pair advanced to a daily high of 110.07 during the American trading hours but edged lower after the FOMC released the minutes of its July policy meeting. Nevertheless, the pair remains on track to close the second straight day higher and was last seen rising 0.3% on the day at 109.90.
DXY inches slightly lower after FOMC Minutes
According to the FOMC’s publication, several participants emphasized that an announcement of asset tapering should not be interpreted as the beginning of a predetermined course for raising the policy rate. With the initial reaction, the US Dollar Index (DXY), which touched its strongest level since early April at 93.26 earlier in the day, dipped below 93.00 but didn’t have a difficult time erasing its losses. As of writing, the DXY was flat on the day at 93.13.
Breaking: Some FOMC policymakers want to start preparing for asset tapering soon.
In the meantime, the benchmark 10-year US Treasury bond yield clings to modest daily gains at 1.275%, helping USD/JPY stay in the positive territory.
There won’t be any high-tier macroeconomic data releases from Japan on Thursday. The weekly Initial Jobless Claims and the Philadelphia Fed Manufacturing Survey will be featured in the US economic docket.
Technical levels to watch for
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August 18, 2021 at 12:08PM