The dollar is losing against the Japanese yen after Powell's dovish comments🏛️
The USDJPY pair is losing nearly 0.9% during today's session. The Japanese yen was doing relatively well early in the European session, but much of the upside was initiated shortly after the start of Powell's speech at the Fireside Chat event held at Spelman College. The banker stated that the Federal Reserve's policy is already in a restrictive zone, and that the FOMC does not need to rush now; as recent CPI reports have indicated a satisfactory decline in inflationary pressures. The money market is now pricing that the Fed will cut interest rates in 2024 by a total of 125 basis points. A cut in March is currently priced at 70%; as recently as yesterday it was around 46%.
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Powell's dovish comments weaken the US dollar in the broad market, which clearly supports the Japanese yen. The USDJPY pair broke out below the psychological barrier of 147.00. source: xStation
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