Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Yen May Rise on Weaker Risk Appetite, US Dollar Falls Before FOMC

Yen May Rise on Weaker Risk Appetite, US Dollar Falls Before FOMC

Talking Points:

  • NZ Dollar down as risk appetite sours in Asian trade
  • US Dollar pressured ahead of FOMC policy decision
  • Yen may rise as market sentiment continues to sour

The New Zealand Dollar underperformed in otherwise quiet overnight trade. The decline played out alongside a drop in Japan’s benchmark Nikkei 225 stock index as well as S&P 500 futures, pointing to fading risk appetite as the source of pressure on the sentiment-geared currency.

The US Dollar likewise suffered, pulling back after touching a three-week high last week, as the focus turns to a much-anticipated FOMC monetary policy announcement. Markets are all but certain that a rate hike is in the cards but the accompanying forecast update and commentary may stoke significant volatility.

Looking ahead, a lull in top-tier economic news flow seems likely to keep sentiment trends in the spotlight. Futures tracking major European and US equity benchmarks are broadly in the red, hinting that higher-yielding FX is vulnerable while the anti-risk Japanese Yen may build some upward momentum.

Retail traders expected US Dollar strength. Find out here what that hints about the price trend!

Asia Session

European Session

** All times listed in GMT. See the full DailyFX economic calendar here.

--- Written by Ilya Spivak, Currency Strategist for

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.