USDJPY is striving to rise as the US Dollar strengthens

USDJPY is up 0.1% on the day, trading between 130.49 and 131.05, as the atmosphere remains apprehensive following an 8.5% drop in Deutsche Bank shares on Friday. Investors are relying on the government to protect the banking system, while depositors have already fled smaller banks, as seen by flows to money market funds.

Markets are anxious as a result of the financial crisis.

Banking stocks plummeted in Europe, with giants Deutsche Bank and UBS Group battered by fears that we are witnessing the worst financial market consequences since the 2008 financial crisis. As a result, the US Dollar, DXY, increased by more than 0.5% to 103.35. Despite this, the USDJPY fell to a seven-week low of 129.65 last week.

In other news, Minneapolis Fed President Neel Kashkari indicated on Sunday that authorities were keeping a “close eye” on the situation. attentively” to see if the financial turmoil caused a credit crunch that threatened to send the economy into a slump. However, markets are putting in an 80% possibility that rates have already peaked, well ahead of the central bank. In fact, a shift is expected, with the first-rate decrease occurring as early as July.

In this regard, analysts estimate US PCE price inflation to decline from a solid 0.6% MoM in January to a still-strong 0.4% in February (also below core CPI’s 0.5% MoM rise).

´´ The YoY rate is anticipated to rise a tenth to 4.8%. Implying that the route to price adjustment will be difficult. In contrast, personal Spending is projected to fall. However this follows a 1.8% increase in the previous month.”

In terms of Fed speakers, we’ll hear from Fed Governor Philip Jefferson later on Monday. And Fed Vice Chair for Supervision Michael Barr appears before the Senate on “Bank Oversight” on Tuesday.

USDJPY Daily Trend