Jun 21 2013
The reaction of the market, against the comment of Federal Reserve Chairman Ben S. Bernanke after FOMC (The Federal Open Market Committee) in US on 20th June wasn’t so big. Even Bernanke hinted a starting dialing down its unprecedented bond-buying program this year as the other financial market. It means the current rate range is comfortable with market for USD/JPY currency trading.
Central Bank may start to dial down the unprecedented bond buying program this year and will totally end it in the middle of upcoming 2014 if the economy gains the sustainable growth, according to the Federal Reserve Chairman Ben S. Bernanke.
Today, the Federal Open Market Committee left monthly bond purchases pace without any change at $85 billion and said that “Downside risks to the outlook for the labor market and also for the economy” have reduced. Policy makers have raised the forecasts for growth for the upcoming year and set a range of 3% to 3.5%, also reduced the outlook for unemployment to 6.5%.
Bernanke said that the committee anticipates that it will be good to moderate purchase pace at the end of this year if the incoming data remains consistent with the forecast. He also added that if the reports will be according to our expectations, we will continue to less the purchase pace through the first half of upcoming year and will end the purchase till the mid of the year.
Rate Range Projection by Bank
Next Week : 94.50 - 98.50
Next 3 Months : 92.00 - 102.00
