USD/JPY Steady Around 103.30 on Fed Tapering Speculation

The dollar was steady against the yen during Asian trading Tuesday as investors continued to mull the likely timing of the Federal Reserve’s tapering of its asset-purchase program following last Friday’s stronger-than-expected U.S. jobs report.

Trading was cautious after a string of speeches by three Federal Reserve presidents suggested the central bank could start scaling back its $85-billion-a-month stimulus program as early as this month. The next Fed meeting will take place next week.

“It’s still hard to tell when the Fed may begin its roll-back,” said Kengo Suzuki, forex strategist at Mizuho Securities, adding that he still only saw a small chance of the Fed trimming its measures beginning in December. “I’d say there’s a 10% chance the Fed will begin tapering in December, a 50% chance it will do so in January and a 40% chance in March,” he said.

WSJ

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.