FXStreet (Bali) - Yen crosses are trading with a bid tone in early Asian trade, supported by the current risk-seeking dynamics in the market place, as illustrated by the S&P500 futures index, up almost 0.5% ahead of Tokyo.
This is a critical week for the market, one in which it will be learnt how committed the Federal Reserve is to finally start a long-awaited tightening campaign.
The CME-determined Fed funds rate is currently pricing the chances of a rate hike at 25%, implying low expectations, and the potential for the USD to strengthen should the odds increase on the lead-up to the risk event of the week, or a rate is actually delivered on Sept 17th.
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