Major risk events ahead: US treasury QRA, FOMC and NFP Perhaps the biggest risk to the recent lower move in USD/JPY is the FOMC meeting on Wednesday.
Major risk events ahead: US treasury QRA, FOMC and NFP
Perhaps the biggest risk to the recent lower move in USD/JPY is the FOMC meeting on Wednesday. However, there are several high importance US events and data that can impact USD/JPY.
On Monday, the US Treasury will detail how it plans to fund the government, detailing a mix of shorter and longer-term issuances (mix of T-bills, notes and bonds). Then on Wednesday, markets will be on the lookout for a greater acknowledgement of re-accelerating inflation from the Fed but the committee could also downplay recent inflation surprises as disinflation is broadly observed.
US ISM manufacturing PMI data is likely to attract more attention than usual after the S&P Global survey now sees the sector as having dipped into a contraction.
Friday ends the week off with non-farm payrolls, where it is expected that the US economy would have added another 243k jobs for the month of April. Therefore, the prospect of growth concerns, combined with hot inflation and a strong labour market provides the Fed with a lot to think about as high interest rates risk weighing on economic growth but is also necessary to calm resurgent price pressures.
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