USDJPY has continued its rebound to about 138.50, mirroring the movement of the USD Index.
In the London session, the USDJPY pair has extended its rebound to approximately 138.50. The asset has tracked the US Dollar Index’s (DXY) recovery motion. After a six-day losing streak, the USD Index recovered to about 99.50. As investors were concerned after hawkish comments from Federal Reserve (Fed) policymakers.
S&P500 futures are performing poorly in Europe, indicating caution among market players despite an overall positive market attitude. US shares were extensively purchased. on Thursday, aided by a surge in technology equities. Despite disappointing performance in the Bank and Financial Services Industry (BFSI). Investors are optimistic that tech-savvy businesses would offer solid results in the second-quarter earnings season.
Despite the recent decline of the US dollar versus the Japanese yen, Japanese policymakers continue to monitor currency movements.
The USD Index has found intermediate support at 99.50. And is gaining strength in order to retake the psychological barrier level of 100.00. Despite low inflation, Fed Governor Christopher Waller feels. That two more interest rate rises are necessary this year to get inflation down to 2%. Although inflation has steadily slowed, the core Consumer Price Index (CPI) of 4.8% is still much over the intended rate of 2%.
Fed Waller feels that two more interest rate rises are necessary.
Meanwhile, the Fed reported that commercial bank borrowings through the Fed’s emergency lending programs fell marginally for the second week in a row. Credit is being avoided by US businesses in order to avoid high-interest payment commitments.
Investors are seeking for clues on whether the Bank of Japan (BoJ) will maintain its ultra-dovish policy stance or adjust its Yield Curve Control (YCC). Aside from that, despite the recent decline of the US Dollar versus the Japanese Yen, Japanese policymakers continue to monitor FX movements.
