CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.

USD/JPY Remains Close to 3-Month Highs on Abe Election Victory

10/24/2017, 9:45:50 AMMarket Analysis
USD/JPY Remains Close to 3-Month Highs on Abe Election Victory

 The dollar traded at three-month highs against the yen, as traders expected the Bank of Japan to continue its loose monetary policy measures after Japanese Prime Minister Shinzo Abe won a snap election for his party.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.19% to 93.75.

The positive start to the week for the greenback comes on the back of strong gains against the yen after prime minister Shinzo Abe’s ruling Liberal Democratic party-led coalition won a two-thirds parliamentary “super majority” that gave him a fresh mandate to continue efforts to revive growth with a mix of ultra-loose monetary policy, spending and reform.

USD/JPY rose 0.14% to Y113.69 easing from a three-month high of $114.10.

Also supporting the dollar was ongoing speculation concerning the appointment of the next head of the Federal Reserve after President Donald Trump said Monday that he would make his choice on Fed chair “very shortly”.

President Trump said last week, he is considering three main candidates to lead the Federal Reserve Board: Current Fed chair Janet Yellen, Federal Reserve Governor Jerome Powell, and Stanford University economist John Taylor.

"Well as you know, I've been seeing a number of people, and most people are saying it's down to two — Mr. Taylor, Mr. Powell," Trump said. "I also met with Janet Yellen who I like a lot, I really like her a lot. So I have three people I'm looking at, and there are a couple of others."

The rise in the dollar weighed on the euro as the single currency fell to a nearly one-week amid ongoing political uncertainty in Spain.

EUR/USD fell 0.31% to $1.1747 while EUR/GBP lost 0.40% to £0.8896.

GBP/USD rose 0.14% to $1.3204 while USD/CAD rose 0.14% to $1.2646. The Canadian dollar came under pressure following wholesale inflation data that undershot expectations.