Japanese Yen Soared To A Three-Month Peak

London: 7 December 2023 (TraderMade): In a notable rally on Thursday, the Japanese Yen (JPY) soared to a three-month peak against the US Dollar (USD), driven by several factors. Bank of Japan (BoJ) Governor Kazuo Ueda's discussions on potential shifts from negative interest rates and support for the JPY played a crucial role.

At about 08:06 AM GMT, the USDJPY pair was at 145.5845 after reaching a high of 147.49899 on Wednesday.

During a meeting with Japanese Prime Minister Fumio Kishida, Governor Ueda linked monetary policy discussions with wage hike outlook, sparking speculations of a possible move away from a decade-long fiscal stimulus. This contradicts the expectations that the Federal Reserve (Fed) may cut rates in 2024.

Market participants are now eyeing the upcoming Weekly Initial Jobless Claims data from the US, with market attention turning to Japan's final GDP print on Friday. Additionally, the closely-watched US Nonfarm Payrolls (NFP) report expected on Friday may influence market dynamics.

US Labor Department reports revealed a significant decline in job openings, hitting their lowest level in two-and-a-half years. The ADP report highlighted a modest increase in private-sector jobs in November, reinforcing expectations of a 25 basis points rate cut at the Fed's March policy meeting.

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