Ella 
USD/JPY tried to end its winning streak at the beginning of the week, falling to around 147.70 in early Asian trading on Monday. However, the dollar experienced selling pressure due to a decline in the U.S. consumer confidence index released on Friday.
The preliminary value of the University of Michigan’s consumer confidence index in the United States in September was recorded at 67.7, compared with the previous value of 69.5 and the expected 69.1. Even so, the U.S. dollar index, which measures the dollar’s value against a basket of currencies, closed up 0.26%, marking its ninth consecutive week of gains. Spot prices are trading around 105.20.
In the past week, U.S. economic data for August were optimistic. CPI is higher than expected.
U.S. economic activity, including retail sales in August and jobless claims in the second week of September, also indicate a strong U.S. economy.
In terms of expectations for the Fed, the probability of another rate hike by the end of 2023 remains relatively high. This shows that the market is still considering the possibility of further tightening measures by the Federal Reserve.
Although these expectations may be subject to a degree of uncertainty or caution. Market participants will continue to closely monitor Wednesday’s monetary policy decision and further communications from the Federal Reserve for any clues on the future direction of interest rates.
On the other hand, the Japanese yen (JPY) has regained all its gains following comments from Bank of Japan Governor Kazuo Ueda earlier last week. Ueda’s comments suggested the Bank of Japan may collect enough data by the end of the year to consider a policy shift, which initially boosted the yen. However, this momentum gradually waned.
