USD/JPY sets for positive and positive closure above 143.00 with counterattacks in US dollar
- The eyes of the US dollar/JPY are a positive weekly closure as the US dollar is backed by USD.
- The US dollar is recovering, as Trump expressed confidence that he is close to concluding commercial deals with a number of commercial partners.
- China denies any trade negotiations with the United States.
The USD/JPY pair is expected to conclude with a positive note above 143.00. The couple rises to approximately 143.50 on Friday, as the US dollar (USD) resumed the recovery step in the hope that the President of the United States (American) Donald Trump will be about to make deals with a number of his commercial partners.
The US dollar index (DXY), which tracks the value of Greenback for its six peers, is approximately 99.75 after a corrective step on Thursday.
During the trading hours in North America, the President of the United States (the United States), Donald Trump, told reporters before leaving to Rome to the funeral of Pope Francis that “commercial deals are going well,” according to Reuters. He added that the administration is close to “reaching Japan”.
Meanwhile, investors have become indifferent to trade relations between the United States and China due to the contradictory data from US President Trump and Beijing. While China denies any economic and commercial negotiations with the United States, Trump has claimed that Chinese President Xi Jinping had contacted him during an interview with Time Magazine.
“He was called”, adding, “I don’t think this is a sign of weakness on his behalf.”
“China and the United States have no advice or negotiations on definitions,” said a spokesman for the Chinese embassy, a spokesman for the Chinese embassy.
In the Japan region, the Consumer Prices Index has maintained the hottest Tokyo (CPI) for April on the hopes of more interest rates from the Bank of Japan alive. The consumer price index in Tokyo has increased with the exception of fresh foods, which was closely followed by BOJ officials at a strong pace of 3.4 % compared to 3.2 % estimates and the previous release of 2.4 %.
Questions and answers in US dollars
The USD (USD) is the official currency of the United States of America, and a “reality” currency for a large number of other countries where there is a circulating alongside local notes. It is the most trading currency in the world, as it represents more than 88 % of the rotation of global foreign currencies, or on average $ 6.6 trillion in transactions per day, according to data from 2022. In the aftermath of World War II, the United States took over the British pound the world reserves. For most of its history, the US dollar was backed by gold, even the Bretton Woods agreement in 1971 when the golden standard went.
The most important individual factor that affects the value of the US dollar is the monetary policy, which is formed by the Federal Reserve (Fed). The Federal Reserve has two states: to achieve price stability (control of control) and enhance full employment. Its primary performance to achieve these two goals is to adjust interest rates. When prices rise very quickly and inflation is 2 % higher than the Federal Reserve goal, the Federal Reserve will raise rates, which helps the value of the dollar. When inflation decreases to less than 2 % or the unemployment rate is very high, the Federal Reserve may reduce interest rates, which weighs to green.
In maximum situations, the Federal Reserve can also print more dollars and quantitative mitigation (QE). QE is the process that the Federal Reserve increases significantly from the flow of credit in a suspended financial system. It is a measure of the non -standard policy used when the credit is dry because banks will not lend to each other (for fear of failing to pay the opposite end). It is the last resort when it is unlikely to achieve interest rates simply the necessary result. The Federal Reserve is the preferred to combat the credit crisis that occurred during the great financial crisis in 2008. It includes the printing of the Federal Reserve more dollars and their use to buy US government bonds mostly from financial institutions. QE usually leads to the weakest US dollar.
The quantitative tightening (QT) is the opposite process in which the Federal Reserve stops buying bonds from financial institutions and does not invest the manager from the bonds he holds in new purchases. It is usually positive for the US dollar.
