The USD/JPY pair trades in a calm manner around 145.00 during European trading hours on Wednesday (6/11). The pair is oscillating in a tight range, as investors await the US Consumer Price Index (CPI) data for May, which will be published at 12:30 GMT.

Ahead of the US inflation data, the US Dollar Index (DXY) is fluctuating around 99.00.

Investors will be watching the US inflation data as it will influence market expectations on the Federal Reserve's (Fed) monetary policy outlook. As measured by the CPI, headline inflation is expected to grow at a faster pace of 2.5% annually, compared to 2.3% in April. The core CPI is also expected to rise to 2.9% year-on-year from the previous reading of 2.8%.

Inflation will show whether the new economic policies announced by US President Donald Trump are pushing up price pressures, assuming that the impact of higher tariffs imposed by Washington will be borne by domestic importers who will pass on the impact to households.

Meanwhile, trade tensions between the US and China appear to have eased after a two-day meeting in London. US Commerce Secretary Howard Lutnick expressed confidence after the meeting that China would lift export restrictions on "rare earths".

On the Tokyo side, investors are doubtful whether the Bank of Japan (BoJ) will raise interest rates again this year. A Reuters poll from June 2-10 showed that most economists expect the BoJ to keep interest rates steady at 0.5% by the end of the year and raise them as early as 2026. (alg)

Source: Fxstreet