USDJPY fell to near the 141.00 support level.
In the London session, the USDJPY fell to near the 141.00 support level. The asset is expected to stay active when the Federal Reserve (Fed). And the Bank of Japan (BoJ) release their interest rate decisions on July 26 and July 28.
Despite investors’ hopes that the Fed-BoJ policy divergence will expand further this week the major is under pressure. The Federal Reserve is poised to boost interest rates even higher. As Inflation in the United States is much below the target rate of 2%. In the United States, inflation fell dramatically in June. As reduced prices for used cars offset the impact of a minor increase in fuel costs.
Fed officials have repeatedly stated that two more interest rate hikes are needed this year. As inflation will take time to reach 2% in the face of a tight labor market. Core inflation in the United States is slowing, owing to solid consumer spending.
The US Dollar Index has given up all of its gains ahead of the preliminary S&P Global PMI data for further direction.
Meanwhile, the US Dollar Index (DXY) has given up all of its gains after reaching an intraday high of 101.40. As USDJPY investors await preliminary S&P Global PMI data for further direction. Manufacturing PMI increased little to 46.4, according to estimates. Compared to the previous release of 46.3, the Services PMI fell to 54.1 from 54.4.Top authorities have varied feelings about the Japanese yen.
According to Bank of Japan Governor Kazuo Ueda, a dovish interest rate strategy should be maintained in order to keep inflation consistently above 2%. While Japan’s top financial diplomat Masato Kanda hinted that the central bank’s approach to monetary stimulus may be tweaked at its next policy meeting due to “signs of changes” in corporate behavior on wage increases and price rises, Reuters reported.