USD/JPY remains vulnerable to BOJ, Federal Reserve expectations, and US -Chinese conversations
- The dollar/JPY remains supported above 144.00 with a focus on US -Chinese commercial conversations.
- Kazuo ueda ruler restricts the weakened hawks.
- The US dollar was served before the US inflation data on Wednesday, which could contribute to the stakes of the Federal Reserve.
Japanese Japanese yen (JPY) is fixed against the US dollar (US dollar) on Tuesday, with the pair of the dollar/JPY out of the level of 144.00 in the relatively silent trade.
Focusing on markets on trade negotiations between the United States and singing, and the broader risk morale, the JPY dollar remains sensitive to transformations in both geopolitical developments and interest rate expectations.
While it seems that the trade conversations in London are making progress, a more honest tone than the Bank of Japan (BOJ) helped reduce the negative side of the yen.
On Tuesday, the Boj Kazuo Ueda ruler stated that inflation still has a way to go to a 2 % goal sustainable. UEDA stated that “we will raise interest rates if we have enough confidence that basic inflation is approaching 2 % or moving about 2 %.”
Market participants have interpreted these notes as they reduce the possibility of an imminent interest rate.
On Wednesday, the next primary catalyst in the US economic calendar will be the issuance of US Consumer Prices Index (CPI) data for the month of May. Expectations are that CPI in the United States increase by 0.2 % on a monthly basis. The inflation is expected to rise to 2.5 % on an annual basis, from 2.3 % in April.
The basic consumer price index, which excludes food and energy prices, is expected to appear 0.3 % in May compared to 0.2 % in April. It is also estimated that the YOY number reflects a 0.1 % increase, increasing to 2.9 % compared to 2.8 % in April.
The most hot printing can be governed by the power of the US dollar by strengthening expectations for the Federal Reserve rate (Fed), while a softer number may weigh an object to the green back.
US dollar price today
The table below shows the percentage of change in the US dollar (USD) against the main currencies listed today. The US dollar was the strongest against the British pound.
| US dollar | euro | GBP | JPY | CAD | Aud | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| US dollar | -08 % | 0.18 % | 0.12 % | -0.20 % | -0.20 % | -0.09 % | -04 % | |
| euro | 0.08 % | 0.27 % | 0.20 % | -0.09 % | -11 % | -01 % | 0.05 % | |
| GBP | -18 % | -0.27 % | -16 % | -0.36 % | -37 % | -0.27 % | -0.21 % | |
| JPY | -0.12 % | -0.20 % | 0.16 % | -0.29 % | -0.35 % | -0.29 % | -0.24 % | |
| CAD | 0.20 % | 0.09 % | 0.36 % | 0.29 % | -01 % | 0.09 % | 0.16 % | |
| Aud | 0.20 % | 0.11 % | 0.37 % | 0.35 % | 0.01 % | 0.12 % | 0.16 % | |
| Nzd | 0.09 % | 0.00 % | 0.27 % | 0.29 % | -0.09 % | -0.12 % | 0.06 % | |
| Chf | 0.04 % | -05 % | 0.21 % | 0.24 % | -16 % | -16 % | -06 % |
The heat map shows the percentage changes in the main currencies against each other. The basic currency is chosen from the left column, while the quotation currency is chosen from the top row. For example, if you choose the US dollar from the left column and move along the horizontal line to the Japanese yen, the percentage offered in the box will represent the USD (base)/JPY (quote).
