The Yen's Climb Continues; Canadian Dollar In Focus

Published 09/07/2022, 04:03 AM
Updated 07/09/2023, 06:31 AM
USD/JPY
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USD/CAD
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If there is a currency pair that is gathering the most amount of attention from investors and traders is USD/JPY. The pair has seen tremendous strength in the past few days, especially in the last two days, and today it has crossed above the 144 price mark for the first time since 1993.

The reason that we are seeing this much strength in the USD/JPY is purely because of the difference in two central banks' policies. The Fed is as hawkish as it can be, and the BOJ still doesn't seem to be bothered much about inflation or changing its stance on monetary policy.

The other interesting currency pair for today is the USD/CAD as the Bank of Canada will announce its monetary policy decision at 12:30 GMT today. The bank brought shock waves to the market during its last event when it increased the interest rate by 100 basis points and left the door open for more rate hikes. Traders are expecting to see another rate hike of 75 basis points today, and this means more pressure on wage inflation which by the way has started to shift higher.

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