Dollar-Yen (USDJPY)
The Japanese yen could strengthen against the dollar if signs of weakness in the US economy allow the Federal Reserve to cut interest rates in September and December. “This result will ease some upward pressure on USD/JPY, especially if the Bank of Japan coincidentally raises rates again this year,” Rabobank FX strategist Jane Foley said in a note. She points to speculation that the Bank of Japan may be inclined to raise rates or reduce bond purchases at a faster pace than previously expected. USD/JPY could fall to 152.00 in a month (from current level of 156.209) if...
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