1Finance

Dollar/yen got used to the 113 handle early in the week and attempts to settle above 114 were heavily fought by sellers. The Fed decision, the nomination of a new Fed Chair and the NFP all moved the pair, but the ranges were not challenged.



"It certainly was a busy week. The Bank of Japan made no changes to its policy and seems to be pleased with the weaker yen. The Fed also kept interest rates unchanged. Despite an acknowledgment that inflation is “soft”, the Fed refrained from sending a signal that it will not raise rates."

"Jay Powell has been nominated by Trump as the next Fed Chair. The move was well-telegraphed and he represents continuation rather than a change. This is not helpful to the US dollar.The Non-Farm Payrolls disappointed, especially on wages. Salaries are up only 2.4% y/y, not enough to push inflation higher."

"The upcoming week is not as busy, but US building permits, housing starts, and consumer confidence should provide some action. Also note a speech from the President of the New York Fed, the first after the nomination of Powell."

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