Federal Reserve FOMC policy rate fixed; Chair Powell maintains cautious stance on rate cuts.

【6/18Market Overview

In Tokyo time, the dollar/yen pair, after touching145.44yen, and PowellChairman remarks were restrained, and selling for position adjustments caused a gradual decline. In the afternoon, reports such as “Israel’s army attacked Iran’s nuclear facilities” were also conveyed, but they did not lead to a safe-haven dollar buy. In European hours, when President Trump stated that there had been contact from Iran and that Iran desired negotiations, excessive caution in the Middle East eased. As a rebound against safe-haven dollar buying, the dollar/yen fell toyen. time, decided to hold the policy rate at-%. In the statement, the view that “uncertainty surrounding the economic outlook has decreased but remains high” was expressed, and the phrase “risks of unemployment and inflation rising” was removed. The dollar/yen fell toyen immediately after the announcement. Later, PowellChairman said in a press conference that “the labor market remains solid,” “it is appropriate to wait for more detailed information before making adjustments,” and “the labor market does not strongly demand rate cuts,” signaling a cautious view toward early rate cuts, which led to dollar buying and the dollar/yen rising toyen.

【6/19Market View