Yen remains stable ahead of BOJ and Fed policy decisions

USD/JPY

TradingKeyJul 29, 2024 12:11 PM

- The yen remains stable after a strong weekly rally due to changing interest rate expectations and stock market turbulence.

- Investors are focusing on upcoming policy decisions by the Bank of Japan and the Federal Reserve this week, with expectations of a BOJ rate hike and a potential Fed rate cut in September.

- Geopolitical tensions, including Israel's response to a rocket strike, add to market uncertainty alongside the impact of U.S. equities on safe-haven currencies like the yen.

The yen held firm on Monday following a significant weekly surge driven by evolving interest rate outlooks and market volatility. Traders are eyeing policy announcements from the Bank of Japan and the Federal Reserve later this week, anticipating a BOJ rate increase and signals for a future Fed rate cut. Geopolitical concerns, such as Israel's response to recent events, coupled with U.S. equity market fluctuations, continue to influence investor sentiment and demand for safe-haven assets like the yen.

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