USD/JPY Cautious Below the Recent 24-Year High, as Japan’s Inflation Remains Elevated
Inflation in Japan stayed above the central bank’s target, as today’s data showed, while the pair is soft after Wednesday’s 24-year highs
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
Inflation in Japan stayed above the central bank’s target, as today’s data showed, while the pair is soft after Wednesday’s 24-year highs
The common currency is having a profitable week so far, but runs another losing month, contained by familiar key technical levels
US President Biden is considering a suspension of the federal gas tax and action could be announced within the day, in a backdrop of soaring prices and monetary tightening by the Fed which creates stagflation fears
The pair is soft, as headline Consumer Price Index (CPI) rose to 9.1% year-over-year in May, in the aftermath of last week’s fifth straight rate hike by the BoE in order fight it
XAU/USD is cautious and unable to find firm direction, as a volatile week draws to a close, during which we saw many central banks handing down their monetary policy decisions
The US central bank delivered its biggest rate increase in almost 30 years earlier in the week and tech sector reels, despite initial reaction higher
The Bank of Japan did not make any changes to its ultra-loose monetary policy, but made a rare reference in the foreign exchange, give the Yen’s weakness
The central bank delivered another 25 basis point interest rate hike, in order to bring down rampant inflation, which it sees rising to double-digits
The US Federal Reserve hiked rates by 75 basis points, which is the biggest increase since 1994, catering to the aggressive market expectations after recent surge in inflation
The commodity lacks direction as investor digest IEA’s monthly report and China’s economic data, while expecting a potentially highly consequential policy decision by the US Fed
The common currency jumped as the ECB reportedly called an unscheduled meeting, while markets brace for the Fed’s policy decision, amidst pressure for 75 basis points rate increase
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