Exchange Rates & Currency Deals

Current market bias: Bearish. Key drivers: - The interest rate differential favors the JPY, as Japan recently raised its rate to 0.75% while the Fed is expected to cut rates further. - U.S. inflation is declining, with November CPI at 2.7%, reinforcing the potential for Fed rate cuts. - Economic growth in the U.S. shows signs of slowing down, which may further affect the USD. Near-term range: The USD/JPY exchange rate is expected to oscillate around current levels, with potential volatility. What could change it: An upside risk includes a notable improvement in U.S. consumer sentiment, which could bolster the USD. A downside risk remains with any further U.S. economic slowdown, potentially leading to additional cuts by the Fed. --- USD/JPY is currently bearish as inflation drops & the Fed signals possible rate cuts. Meanwhile, the BoJ's hike to 0.75% supports JPY. Expect potential volatility in the months ahead, with consumer sentiment as a key factor influencing the USD