Yen weakens, markets stabilize ahead of US inflation data
TradingKeyAug 12, 2024 1:26 PM
- The yen weakened against the dollar on Monday, following a volatile week, as investors assess the likelihood of a significant Fed rate cut next month amidst upcoming U.S. economic data.
- Despite a turbulent start with market sell-offs driven by U.S. economic concerns and the Bank of Japan's stance, the week ended on a calmer note, with reduced expectations for Fed interest rate cuts post stronger U.S. jobs data.
- Market analysts predict a possible scaling back of Fed rate cut expectations if global risk sentiment improves, but investors are still pricing in 100 basis points of cuts by year-end, with upcoming U.S. inflation data likely to influence market perceptions.
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