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USD / JPY remains above 106.50 pending Powell's performance

USD / JPY remains above 106.50 pending Powell's performance

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Jim Anderson - Public Relations

The pair USD / JPY rose above 106.50 on Friday, however, the activity of the players remains low in anticipation of the speech of Fed Chairman Powell in Jackson Hole. By the time of writing, the pair was trading with an increase of 0.2% at 106.62.

The weak PMI data released yesterday in the manufacturing and services sectors put pressure on the dollar, but it is supported by optimistic comments by the head of the Federal Reserve Bank of Philadelphia (Harker) and the head of the Federal Reserve Bank of Kansas City (George). Both representatives of the Fed said that there is no need to cut rates at the moment.

Later today, we are waiting for comments by Fed representatives Bullard, Kaplan, Mester, and Harker on the sidelines of the Jackson Hole Symposium, but all the players' attention is focused on the speech of Fed Chairman J. Powell at 15:00 London time. Now the US dollar index is trading with an intraday increase of 0.23% at 98.45.

Meanwhile, on Friday, the 10-years yield has been growing for the third day in a row and is trading at an intraday increase of 1.7%. Despite comments by the Global Times editor that China will soon unveil a plan to introduce retaliatory duties on a number of US products, markets remain positive.