USDJPY is hovering around 146.60 ahead of the publication of US CPI.
The USDJPY is struggling to rebound from the previous day’s losses. Ahead of the publication of the US Consumer Price Index (CPI), hovering around 146.60 throughout Tuesday’s Asian session. The pair was under pressure due to the Bank of Japan’s (BoJ) positive statements. As well as the US Dollar’s (USD) poor performance.
The Japanese yen (USDJPY) rose as a result of BoJ Governor Kazuo Ueda’s hawkish remarks.
Kazuo Ueda, Governor of the Bank of Japan, stated over the weekend. That the Japanese central bank is getting closer. to reversing its negative interest rate policy.
Governor Ueda stated in an interview with the Yomiuri Shimbun newspaper that the Japanese central bank’s negative interest rates could be changed by the end of the year if data supports the notion that the Bank of Japan is making progress toward meeting its 2% annual inflation target.
Improved US Treasury rates may lend support to the US dollar.
The US Dollar Index (DXY) beats around 104.60, snapping losses due to favorable performance of US bond rates. At the time of writing, the 10-year US Treasury bond yield was 4.29%.
However, greenback bulls are becoming apprehensive ahead of the publication of the crucial US Consumer Price Index (CPI), which is scheduled for Wednesday. The headline Consumer Price Index (CPI) is expected to rise 0.5% month on month, up from 0.2% in the preceding period, according to market projections.
The core CPI is predicted to remain steady at 0.2%. Any variations from these inflation estimates might cause the market’s bias towards the US Dollar (USD) to flip quickly.
The labor market has improved in the last week, as seen by two solid reports: the ISM Services PMI and Initial Jobless Claims. Both sets of data outperformed the market consensus. As long as economic data shows a good outlook, the USDJPY pair is expected to maintain its upward trend.
The USDJPY pair may recover as a result of the US Dollar’s (USD) strong performance. US dollar is expected to retain its strength by efficiently absorbing the effects of increasing interest rates.
Furthermore, the currency may benefit from favorable economic statistics from the United States.
