Sources: BOJ sees no backlash in markets if rate cut becomes necessary – Bloomberg

Dhwani Mehta FXStreet

Bloomberg quotes people familiar with the matter, as citing that the Bank of Japan (BOJ) official believe that if they choose to lower interest rates further into the negative territory in the coming months, it wouldn’t backfire as markets have priced-in such a possibility.

The officials added that the BOJ is also increasingly confident that commercial banks are strong enough to cope with a lower negative rate and don't see the pain becoming overly disruptive to Japan's overall financial system, per sources.

USD/JPY remains unperturbed by the above reports, consolidating below the seven-week tops of 108.36, as pre-Fed cautious mood continues to cap the upside.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.