USD/JPY Analysis:
- President Trump returns to the White House and advises negotiators to walk away from stimulus talks until after the US presidential election
- USD/JPY[1] surges but faces near term challenges for a continued bullish move
- IG Client Sentiment[2] reveals a mixed trading environment even though sentiment tipped slightly to the short side for the first time since early June
US Stimulus Talks Postponed till After the Election
This week, President Trump made his return to the White House and wasted no time to once again appear on the top story for many news outlets as he advised his negotiators to walk away from talks regarding further stimulus until after the election.
This latest development suggests that monetary and fiscal policy may not be fully aligned as news of Trumps decision came just hours after Fed Chair, Jerome Powell warned that the economy could see “tragic” outcomes without robust government support.
Revelations like this may hold more sway on the markets as the US prepares to hold elections next month – learn how this presidential election may prove anything but typical[3] for the US dollar[4].
Event Risk on the Horizon
Scheduled event risk remains relatively quiet this week apart from a number of central bankers speeches throughout the week. Tomorrow, Bank of Japan[5] Governor, Kuroda is scheduled to speak, the US vice presidential debate takes place and the initial jobless claims numbers are released.
Central Banks have the ability to impact major financial markets. Find out why in our FX Trader’s Guide to Central Banks[6].
For all market-moving data releases and events see the DailyFX Economic Calendar[7]
USD/JPY Surges: Key Technical Levels
The markets seem to have
