- USD/JPY fell to the 143.00 region after the Fed held rates steady on Wednesday.
- Market anticipation of a rate cut in July accelerated after Fed warned of rising economic risks.
USD/JPY took a header on Wednesday, falling to 143.00 in intraday trading after the Federal Reserve (Fed) held rates steady at 4.25-4.5%, as many investors had expected. Market bets of an impending pivot by the Fed into a rate-cutting cycle rose after Fed policymakers warned of rising economic risks.
Based on the Fed’s recent rate announcement, policymakers indicated that although US employment and economic activity are generally stable, the risks to labor and production have increased. This rise in risk primarily stems from uncertainties related to tariffs and US trade policies. The concerns voiced by Fed officials about economic risks fueled market expectations for potential rate cuts, resulting in an unexpected surge in risk appetite.
Read more Fed news here: Fed leaves policy rate unchanged as expected
More to come…
USD/JPY 5-minute chart
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