The Japanese Yen (JPY) remains subdued against the US Dollar (USD) following the Bank of Japan's (BoJ) minutes from its July policy meeting released on Thursday. The JPY faces challenges as traders expect the BoJ to ponder before further rate hikes. USD/JPY trades around 145.00 on Thursday.
The BoJ Monetary Policy Meeting Minutes expressed the members' consensus on the importance of remaining vigilant regarding the risks of inflation exceeding targets. Several members indicated that raising rates to 0.25% would be suitable as a way to adjust the level of monetary support. A few others suggested that a moderate adjustment to monetary support would also be appropriate.
The US Dollar receives downward pressure from rising odds of further interest rate cuts by the US Federal Reserve (Fed) in upcoming policy meetings. According to the CME FedWatch Tool, markets are pricing in around a 50% chance of totaling 75 basis points to be deducted by the Fed to a range of 4.0-4.25% by the end of this year.
Traders are now focused on the release of the final US Gross Domestic Product (GDP) Annualized for the second quarter (Q2) scheduled to be released later in the day. Tokyo's inflation data will be eyed on Friday, which may provide further guidance on the economic outlook and potential monetary policy moves by the Bank of Japan.
Source: FXStreet
