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Forex pairs in this Article » USD/JPY (London) - Analyst, Pernille Bomholdt Nielsen at Danske Bank noted that the dollar has stabilised following Thursday's sell-off.

Key Quotes:

“The dollar has stabilised following Thursday's sell-off but risks remain of further undershooting, as the consensus expectation is now for the Fed to postpone QE tapering to Q1 next year”.

“A Bloomberg survey of 40 economists shows that the expected starting point for the Fed has now even been shifted to March as a consequence of the US government shutdown”.

“The September US employment report published tomorrow will naturally affect sentiment but unless QE tapering expectations are moved forward again,
this looks like a continued difficult period for the dollar and potentially leaves further room for the FX carry trade to recover more of its summer losses”.

“We still see upward potential in USD/JPY”.
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