Dollar rises against Japanese yen for first session in 3

US dollar rose during the Asian session to rebound for the second session from its lowest level since January 3 against the Japanese yen amid a lack of economic data by the Japanese economy, the third largest economy in the world and on the threshold of an economic data release expected Wednesday by the US economy.

As of 05:54 GMT, USD/JPY rose by 0.21% to 107.43 compared to the opening level at 107.20 after the pair reached a high of 107.50 and a low of 107.10.

Investors are currently waiting for the US economy to release the Durable Goods Orders index reading, which account for about a half of consumer spending, and for more than two-thirds of US GDP, which could reflect stability at zero levels versus a 2.1% drop in April, While the core reading of the same index may show a 0.1% growth versus stability at zero levels in April.

This comes in conjunction with the release of the goods trade balance, which may show the deficit shrinking to $71.8 billion against $72.1 billion in April, with the reading of the Wholesale Inventories Index, which may indicate a slowdown in growth to 0.6% from 0.8%, as this comes hours after Federal Reserve Governor Jerome Powell's speech in New York, during which he limited the opportunities for interest rate cuts by the next meeting.

In his speech on economic and monetary policy at the Council on Foreign Relations, Powell said that many members of the Federal Open Market Committee are expecting expansionary measures, adding that the strength of the economic fundamentals supports the continued pace of growth and employment, as the economy continues to grow, while inflation is at the Fed's target.

Powell also noted that the Federal Commission expects inflationary growth to grow despite inflation stabilizing below 2%. He pointed out that the labor and agriculture sectors were concerned by the escalation of trade tensions. He added that the Committee's expectations remained positive despite the increasing uncertainty, While confirming that the Federal Reserve is closely monitoring developments in the domestic situation and is fully prepared to act appropriately.

On Wednesday, the Federal Open Market Committee dropped the word "patient" from its statement and added "we will act as necessary" to preserve the economy, which in turn opened the way for a possible cut in federal interest rates later. That eight members see a reduction this year. Whilst, the average market's forecast did not anticipate any reduction this year.