empty
19.08.2022 10:17 AM
Vague economic outlook and recent behavior of Fed prompted more volatility to markets (expect a rally in USD/JPY and EUR/JPY)

Trading was quite volatile last week because of published economic statistics and minutes of the July Fed meeting. Clearly, the market is dominated by uncertainty, especially since the global economy is at risk of sliding into a full-scale recession and the Fed is likely to ramp up its aggressiveness after a pause in rate hikes in September.

It is likely that before the release of updated data on US GDP for the second quarter, quotes in the forex market will be chaotic, particularly on those that are paired with dollar. Analysts have projected that US GDP will decline by 0.9%, but that could change when inflationary pressure eases.

This is why there is no continued strong growth in dollar. It will only do so when the US economy deteriorates. In this regard, the revised GDP data for the second quarter, as well as the index for personal consumption, will be important. If both indicators show continued negative dynamics, dollar will rise because of demand for it as a safe-haven currency. If GDP is at least zero and not negative, and personal consumption increases, dollar will again be under strong pressure.

Forecasts for today:

This image is no longer relevant
This image is no longer relevant

USD/JPY

The pair is currently trading at 136.50. Further buying pressure will push the quote to 137.45.

EUR/JPYThe pair is trading below 137.80. Further buying pressure will bring the quote to 139.00.

Pati Gani,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Viktor Vasilevsky
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD Overview – August 14: Technicals + Fundamentals = Verdict

The GBP/USD currency pair also continued its upward movement, which did not require any new fundamental events or macroeconomic releases. Tuesday's U.S. inflation report was more than enough. Recall that

Paolo Greco 03:52 2025-08-14 UTC+2

EUR/USD Overview – August 14: The Dollar Back in Freefall

On Wednesday, the EUR/USD currency pair continued the upward movement that began on Tuesday. Recall that on Tuesday, the U.S. released a high-profile report with no truly high-profile implications. U.S

Paolo Greco 03:52 2025-08-14 UTC+2

GBP/USD. Why Is the Pound Rising?

The pound in the GBP/USD pair is steadily moving upward, updating local price highs. On Wednesday, the pair has approached the boundaries of the 1.36 area, whereas as recently

Irina Manzenko 00:39 2025-08-14 UTC+2

The Fed May Cut Rates by 50 Basis Points at Once

The tensions surrounding the Federal Reserve are not subsiding. For several consecutive months, Donald Trump has tried in every possible way to achieve Jerome Powell's dismissal, but without success. Powell

Chin Zhao 00:39 2025-08-14 UTC+2

RBA Cuts Rate, AUD/USD Faces Increasing Pressure

The Reserve Bank of Australia (RBA) has, as expected, cut the interest rate by 25 basis points, from 3.85% to 3.60%. The market hardly reacted to the move

Kuvat Raharjo 00:39 2025-08-14 UTC+2

Dollar Falls Victim to Carry Trade

If you knew where you'd fall, you'd lay down some straw. If the Federal Reserve had known about the serious cooling in the U.S. labor market, it would have

Marek Petkovich 00:39 2025-08-14 UTC+2

Kiwi to Come Under Pressure from Upcoming RBNZ Rate Cut

The Reserve Bank of New Zealand's quarterly survey of inflation expectations showed a decline from 2.29% to 2.28% over the two-year horizon, providing strong evidence that inflation is stabilizing near

Kuvat Raharjo 00:39 2025-08-14 UTC+2

Gold Lost in Tariffs

Gold was tossed back and forth on rumors that the White House would impose import tariffs on the precious metal. First, the U.S. Customs and Border Protection demanded that Switzerland

Marek Petkovich 00:39 2025-08-14 UTC+2

USD/JPY. Analysis and Forecast

Today, Wednesday, the Japanese yen posted its second consecutive day of gains amid the general weakening of the U.S. dollar. However, further development of this move is limited by uncertainty

Irina Yanina 19:54 2025-08-13 UTC+2

EUR/JPY. Analysis and Forecast

Today marks the fourth consecutive day of an uptrend in the EUR/JPY pair, which is also the sixth positive session in the past seven days. Spot prices have reached

Irina Yanina 11:58 2025-08-13 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.