Japanese Yen edges higher on verbal warnings, traders await US ADP labour and PCE data
The USD/JPY pair loses momentum to around 157.00 during the early Asian session on Wednesday.
The Japanese Yen (JPY) has edged higher against the US Dollar (USD) amid verbal warnings from US Treasury Secretary Scott Bessent and Japan's Finance Minister Satsuki Katayama, who reaffirmed their intention to strengthen cooperation to address the JPY's weakness. Recent data releases, such as a fall in industrial production in August, have not dampened the Yen's strength.
Fed officials' hawkish signals, including warnings about the need for further rate increases to combat inflation, may help limit the Greenback's losses. Traders will be closely monitoring the release of US ADP employment and Personal Consumption Expenditures (PCE) Price Index reports later in the day. Currently, there is a 47.1% probability of a Fed rate hike in October and a 92.5% odds of an increase in December.
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