Forex News
The Bank of Japan's (BoJ) opinions suggest that many key members are advocating for a hike in Japanese interest rates, foreseeing a sustained or even surpassing inflation target.
The British Pound is facing downward pressure as many anticipate the BoE signaling a rate cut in its upcoming central bank meeting announcement.
Given the significant interest rate gap between Japan and the United States, the yen remains a favored currency for carry trades.
Today's release of a range of US economic data caused the US dollar to fluctuate sharply.
Japan is believed to have injected over 50 billion USD to support the yen exchange rate through multiple rounds of intervention.
Federal Reserve Chair Jerome Powell dismissed the possibility of a rate hike but also refrained from indicating a clear path for a rate cut. Consequently, the US dollar weakened.
USD/JPY reached its daily high at 160.23 and then plummeted to 155.04 within about 4-5 hours.
The PCE report confirmed stronger-than-expected inflationary pressures in the US, boosting the US dollar ahead of next week's FOMC meeting.
The Bank of Japan's policy meeting outcome has left many disappointed, leading to renewed selling of the yen.
Economic data signals slower growth in the US economy, yet inflation pressures remain unexpectedly high.
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