While expectations for an FRB rate hike have receded, higher oil prices are weighing on the yen, and dollar/yen is expected to remain broadly flat to within a narrow range.
The daily FX report notes that, amid reports of reduced expectations for an FRB rate hike, rising oil prices are pushing up long-term U.S. yields and limiting declines in dollar/yen. Based on the previous day's movement, dollar/yen is expected to continue trading within its range.
Market factors cited include movements in oil prices and long-term U.S. yields. While expectations for an additional FRB rate hike have receded, higher oil prices are expected to push up yields and provide some support for the dollar. Dollar/yen is expected to remain without a clear directional bias.
Today's factors to watch include oil buying trends and movements in long-term U.S. yields. The market is expected to continue monitoring trading within the range, with attention focused on whether subsequent FRB comments and policy developments push the currency pair higher or lower.
The article focuses on FRB-related developments and the impact of oil prices, summarising the current state of dollar/yen and the outlook for the day. The report by Gaitame.com is cited as the source.