USD/JPY back to 102.65 with Fed in focus

The yen retreated toward recent lows against the dollar and the euro in Asia on Thursday, failing to capitalize on a small bounce as markets positioned for a possible scaling back of the Federal Reserve’s stimulus as early as next week.

News that Congress has reached a bipartisan budget deal that would end three years of impasse and fiscal instability was seen clearing a potential hurdle for the Fed to taper its massive bond-buying program.

Investors’ appetite for risk waned on the growing possibility of an earlier-than-expected stimulus reduction by the Fed at its final policy meeting for 2013 next Tuesday and Wednesday.


This article 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 Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.