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USD/JPY holds steady above 143.00 despite softer US Dollar

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  • USD/JPY flatlines around 143.20 in Wednesday’s early Asian session. 
  • Investors raise their bets on a jumbo rate cut from the US Fed in November.
  • The BoJ Governor signals no rush to raise rates further. 

The USD/JPY pair trades flat near 143.20 despite the weaker US Dollar (USD) during the early Asian session on Wednesday. However, the rising expectation of a jumbo rate cut by the US Federal Reserve (Fed) in November might continue to weigh on the pair. 

Fed Governor Michelle Bowman said on Tuesday that key measures of inflation remain "uncomfortably above" the 2% target, warranting caution as the Fed proceeds with cutting interest rates. However, she preferred the Fed to lower by a quarter percentage point, more in line with the traditional moves at the central bank. 

Fed Governor Adriana Kugler is set to speak later on Wednesday. The release of the US Personal Consumption Expenditures (PCE) Price Index for August will be in the spotlight on Friday. Any dovish comments from Fed officials and signs of softer inflation could undermine the USD against the Japanese Yen (JPY). 

Data released by the Conference Board on Tuesday showed that the US Consumer Confidence Index fell to 98.7 in September from a revised 105.6 in August. This figure registered the biggest decline since August 2021. 



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