Category: Forex News, News

USD/JPY Forecast: BoJ Speech and Consumer Confidence to Influence Yen Outlook

While the BoJ will need consideration, consumer confidence numbers from Japan also warrant investor attention.

Economists forecast the Consumer Confidence Index to increase from 38.3 to 38.9 in May. Upward trends in consumer sentiment could signal a pickup in consumer spending. In turn, consumer spending may fuel demand-driven inflation and allow the BoJ to raise interest rates.

However, the Bank of Japan will need households to increase spending. The Japanese economy contracted in Q1, with private consumption contributing. Despite the spring wage hikes, recent household spending figures have disappointed.

US Economic Calendar: FOMC Member Speeches in Focus

Later in the session, FOMC member speakers need monitoring amidst falling investor bets on a September Fed rate cut.

FOMC member John Williams is on the calendar to speak on Wednesday. Support to further delay interest rate cuts could drive buyer demand for the US dollar. Recent economic data supported a more hawkish Fed rate path. However, the Personal Income and Outlays Report (May 31) could prove pivotal for the Fed and the Greenback.

An unexpected increase in consumer confidence reduced bets on a September rate cut further on Tuesday (May 28). The CB Consumer Confidence Index increased from 97.0 to 102.0.

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