The USD/JPY pair lost traction around 150.95 during the early Asian session on Friday (11/29). The Japanese yen (JPY) moved higher after Japan's Tokyo Consumer Price Index (CPI) inflation report came in higher than expected for November.
Data released by the Statistics Bureau of Japan on Friday showed that the Tokyo Consumer Price Index (CPI) rose by 2.6% YoY in November, compared to 1.8% in the previous month. Meanwhile, the Tokyo CPI ex Fresh Food, Energy rose by 2.2% YoY in November compared to 1.8% previously. The Tokyo CPI ex Fresh Food increased by 2.2% YoY in November, compared to a 1.8% increase in October, and was above market consensus of 2.1%.
The core CPI remained above the Bank of Japan's (BOJ) target of 2% and maintained market expectations for a near-term interest rate hike. This, in turn, boosted the JPY and created a headwind for USD/JPY. BoJ Governor Kazuo Ueda said the Japanese central bank will continue to raise interest rates if inflation remains on track to steadily reach 2% as projected.
On the other hand, Wednesday's US PCE data indicated that progress in lowering inflation appears to have stalled in recent months, which could dampen expectations for the Federal Reserve (Fed) to cut interest rates in 2025. This may have triggered a modest rise in US Treasury yields, providing some support for the greenback. Markets are now pricing in a near 62.8% chance that the Fed will cut rates by a quarter-point in December, up from 55.7% earlier this week, according to the CME FedWatch Tool.
Source: FXSTreet
The Japanese yen hovered around 147.5 per dollar on Tuesday after gaining about 1% in the previous session, as investors continued to digest the weekend's election outcome. While the ruling coalition...
The Japanese yen rose toward 148 per dollar on Monday, recovering some of last week's losses after the ruling coalition lost its majority in the weekend's upper house election, bringing a new wave of ...
The Japanese yen rose to around 148 per dollar on Friday, rebounding from a significant drop in the previous session, as investors digested the latest inflation data. Headline inflation ticked down to...
The Japanese yen fell to around 148 per dollar on Thursday, as investors reacted to disappointing trade figures that fueled concerns about a potential technical recession. Japan's trade surplus narro...
The Japanese Yen (JPY) hit a fresh low since April against its American counterpart during the Asian session on Wednesday, with the USD/JPY bulls now awaiting a sustained strength beyond the 149.00 ma...
Major European bourses declined on Tuesday, with both the STOXX 50 and the STOXX 600 slipping 0.2%, as uncertainty over tariffs continued to weigh on investor sentiment. The looming August 1st deadline for the US to begin imposing a 30% tariff on...
The Nikkei 225 slipped 0.11% to close at 39,775, while the broader Topix Index edged up 0.06% to 2,836 on Tuesday, with Japanese markets struggling for direction as investors assessed the implications of the weekend's election. While the ruling...
Silver prices (XAG/USD) weakened slightly, approaching $38.80 at the start of the European trading session on Tuesday (July 22nd). However, the precious metal remains near its decade-high of around $39.00. The outlook for the precious metal remains...
Asia-Pacific markets traded mixed Monday, as investors keep a close watch on the People's Bank of China's decision on its 1-year and 5-year loan...
European stocks opened the week on a cautious note, with both the STOXX 50 and STOXX 600 hovering near the flatline as investors closely monitor...
European stocks posted slight declines on Monday (July 21st) as markets continued to assess the trade outlook in the European Union. The Eurozone...
The US has signaled it will not relax its August 1 deadline for higher tariffs against the European Union as the bloc struggles to reach a deal on...