USD/JPY eases from over one-month peak, trades with modest gains just below 134.00 – by hareshmenghani USDJPY Fed Bonds BOJ Currencies
Expectations that the Federal Reserve will pause its rate-hiking cycle, sooner rather than later, fail to assist the to capitalize on its recovery move from a one-year low, which, in turn, acts as a headwind for the USD/JPY pair. The bets were lifted after the US CPI and the PPI report released last week indicated that disinflation is progressing smoothly.
In fact, the University of Michigan's preliminary report showed that one-year inflation expectations rose to 4.6% from 3.6% in March and Consumer Sentiment Index inched up from 62.0 to 63.5 in April. Adding to this, impressive bank earnings eased concerns about a banking crisis that unfolded in March. Apart from this, resilience in US coresuggested that the US economy is not so bad.
The two-year US Government bond, which typically moves in step with interest rate expectations, and the benchmark 10-year Treasury note, hold steady near a two-week top. The resultant widening of the US-Japan rate differential, along with the Bank of Japan's dovish near-term, might continue to undermine the Japanese Yen and further contribute to limiting the downside for the USD/JPY pair.
Market participants now look forward to the US economic docket, featuring the release of the Empire State Manufacturing Index later during the early North American session. This, along with the US bond yields, should influence the USD price dynamics and provide some impetus to the . Traders will further take cues from the broader risk sentiment, which tends to drive demand for the safe-haven JPY, to grab short-term opportunities.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USD/JPY traces on sluggish yields below 134.00 even as BoJ vs. Fed divergence regains attentionUSD/JPY traces on sluggish yields below 134.00 even as BoJ vs. Fed divergence regains attention – by anilpanchal7 USDJPY RiskAppetite YieldCurve BOJ Fed
Read more »
USD/JPY Price Analysis: Likely flex muscles above 134.00 as Fed to hike rates furtherUSD/JPY Price Analysis: Likely flex muscles above 134.00 as Fed to hike rates further USDJPY DollarIndex ChartPatterns SupportResistance Inflation
Read more »
Rutgers faculty strike suspended — classes for NJ university's 67,000 students resume MondayBREAKING: Rutgers unions for 9,000 faculty are suspending their strike, reaching a 'framework' deal with the university. Correction: A previous tweet incorrectly described the status of the strike and has been deleted.
Read more »
Rutgers faculty strike suspended — classes for 67,000 students resume MondayBREAKING: Rutgers unions for 9,000 faculty are suspending their strike, reaching a 'framework' deal with the university. Correction: A previous tweet incorrectly described the status of the strike and has been deleted.
Read more »
SpaceX will try to launch most powerful rocket ever MondaySpaceX plans to carry out its first test flight on Monday of Starship, the most powerful rocket ever built, designed to send astronauts to the Moon and eventually beyond.
Read more »
George Santos to announce reelection campaign MondayRep. George Santos (R-Long Island) will announce his campaign for reelection Monday at a press conference in Washington D.C. two people familiar with the plan tell The Post.
Read more »