USDJPY remained positive near 155.80.
The USDJPY pair is trading in positive territory for the third day in a row, around 155.80, during the early Asian session on Monday. The pair’s decline is backed by poor GDP figures from Japan in the first quarter. Later in the day, Federal Reserve officials Bostic, Barr, Waller, Jefferson, and Mester will speak. The FOMC minutes will be due on Wednesday. On Friday, The Japanese National Consumer Price Index (CPI) will be under the spotlight.
Fed’s Bostic noted signs of dropping inflation but wants to wait for further evidence before lowering rates.
Atlanta Fed President Raphael Bostic indicated on Friday. While he noticed signs of lowering inflation in the most recent CPI report. He prefers to monitor the May and June statistics to ensure that inflation does not reverse. Meanwhile, Richmond Fed President Tom Barkin stated. That the central bank must maintain high borrowing prices for an extended period of time to ensure that inflation remains on pace with its aim.
Loretta Mester, President of the Cleveland Fed, stated. That policy was well positioned and that it was premature to conclude that inflationary growth had paused. Richmond Fed President Tom Barkin remarked. That the central bank needs to keep borrowing costs high for a longer period of time to ensure inflation stays on track. with its aim.
The difference in interest rates between the United States and Japan weighs on the JPY and provides a tailwind for the pair.
The huge interest rate disparity between the United States and Japan puts some selling pressure on the Japanese yen (JPY), lifting the USDJPY. In March, the Bank of Japan abandoned the world’s sole negative interest rate policy. It emphasized that financial conditions would be kept loose, and interest rates would gradually rise.
