USD/JPY trades at 105.20
US Dollar is being sold off ahead of US data & central banks’ announcements.
US Retail Sales (Aug) are expected to rise
USD/JPY points to further losses, accelerating decline towards 104.20.
The US Dollar is out of favour prior to US events, USD/JPY trades near the 105.00 level. The focus is selling out of the greenback, whilst safe-haven and high yielding assets rise.
US Retail Sales and the US Federal Reserve interest rate decision are in focus. Retail sales are expected to rise 1% in August, while the closely watched Control Group sub-component is forecast to increase 0.5%, down from 1.4% rise in July.
The Fed is not expected to make changes to monetary policy after announcing a shift in framework, to targeting average inflation. Further clarification on how far the Fed are prepared to see inflation overshoot will be listened for. Updated economic projections will also be closely eyed.