The yen fell to its lowest level since 1990, the risk of Japanese intervention
First quarter US GDP data is the focus
The US dollar traded slightly better on Wednesday yesterday compared to the significant decline that had occurred the previous day following the reaction to the assessment of business activity in the United States (US) which declined in April.
Against the US dollar, the Yen currency fell to its lowest level since 1990 when the price touched the latest level in the 155.00 zone.
This is a warning to the market to prepare for possible intervention measures by the central bank and the Japanese government against the risk of the currency.
The focus will be on the Asian session tomorrow (Friday) with the Bank of Japan (BOJ) policy meeting.
Interest rates are expected to remain at 0.10% after increasing from negative levels previously.
As expected by analysts, the depreciation of the US dollar that started last Tuesday is seen to be temporary with the expectation that there is still potential for the king of the currency to 'wake up' again.
A clearer signal will be awaited through important data to be published in the New York session later tonight which measures US economic growth for the first quarter of 2024.
Preliminary readings for Gross Domestic Product (GDP) will be published, but the expected figure is lower than the last quarter of 2023.
The next indicator will be assessed through data on the PCE price index, which measures personal spending by US consumers, to be published in the New York session on Friday.
These two data which are the focus of the Federal Reserve (Fed) are expected to have a big impact on market movements at the end of the week.
Gold trading on Wednesday yesterday was seen moving flat after the price that fell the previous day and reached the level of $2,300 has bounced back.
