The dollar rebounded from its lowest in 2 weeks against the yen, and attention is on the minutes of the Federal Committee meeting

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session, to witness its rebound to the third session from its lowest since August 4, when it tested its lowest since May 25 against Japan, following the developments and economic data that followed on the Japanese economy and on the cusp of Developments and economic data expected today, Wednesday, by the US economy, the largest economy in the world, which includes the disclosure of the minutes of the recent Federal Open Market Committee meeting.

At exactly 06:57 am GMT, the US dollar pair rose against the Japanese yen by 0.05% to levels of 109.63 compared to the opening levels at 109.58, after the pair achieved its highest level during the trading session at 109.68, while the pair achieved its lowest level at 109.48.

We also followed the Japanese economy with the release of the trade balance index reading, which showed a surplus of 53 billion yen, compared to a deficit of 63 billion yen last June, below expectations that indicated a surplus of 0.12 trillion yen, while the seasonally adjusted reading of the same indicator showed a widening of the surplus. To 441 billion yen, compared to 384 billion yen in June, contrary to expectations that the surplus would shrink to 202 billion yen.

This came as the annual reading of exports showed a slowdown in the growth rate to 37.0% compared to 48.6% in the previous annual reading for the month of June, worse than expectations that indicated a slowdown in growth to 39.0%, and the annual reading of imports indicated a slowdown in the growth rate to 28.5% compared to 32.7% In June, contrary to expectations that growth would accelerate to 35.1%.

We also followed by the second largest economy in Asia and the third largest economy in the world, the release of the machinery orders index, which showed a decline of 1.5% compared to a rise of 7.8% last May, outperforming expectations that indicated a decline of 2.7%, while the annual reading of the indicator showed At the same time, the pace of growth accelerated to 18.6%, compared to 12.2% in May, exceeding expectations that indicated an acceleration of growth to 15.8%.

On the other hand, investors are currently awaiting the release of housing market data by the US economy, with the release of the index of homes started to be built, which may reflect a decline to 1.60 million, compared to a rise of 6.3% at 1.64 million in June, in conjunction with the reading of the building permit index. An increase to 1.61 million compared to a decline of 5.3% to 1.59 million in June.

This comes before we witness the Federal Reserve revealing the minutes of the Federal Open Market Committee meeting that was held July 27-28, during which the interest rate was kept at its lowest ever, between zero and 0.25%, and the bond purchase program of more than $120 billion. Other than that, we followed yesterday Fed Governor Jerome Powell reported that it is still not clear whether the delta mutating will have a significant impact on the economy, expressing that we will not simply return to the pre-pandemic economy, adding that digital money has become more important.

 

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