In European trading, dollar/yen fell as low as ¥158.56 before returning to the ¥159 level, with short-term dollar selling and yen buying observed. The move was driven by lower crude oil prices and US long-term yields, and the trend could change depending on upcoming US CPI data.
In European trading, dollar/yen fell as low as ¥158.56 before recovering to the ¥159 level. Lower crude oil prices and US long-term yields prompted short-term dollar selling and yen buying. The trading ranges were ¥158.56–¥159.37 for dollar/yen, ¥183.14–¥183.87 for euro/yen, and 1.1534–1.1541 for euro/dollar.
The market is awaiting the release of the US Consumer Price Index (CPI). The view is that dollar buying is likely if CPI growth accelerates as anticipated. The current move is considered short-term.
The direction of the currency market could shift again depending on upcoming catalysts. Market participants are watching the CPI results and the reaction of financial markets.