The USD/JPY rate from tonight through tomorrow is expected to depend on the results of the US July PPI, with an expected range of ¥159.00 to ¥159.80 per dollar.
In the foreign exchange market from tonight through tomorrow, the USD/JPY rate is likely to be driven by the results of the US July Producer Price Index (PPI). The market expects USD/JPY to trade in a range of approximately ¥159.00 to ¥159.80.
US July PPI is expected to have risen 4.9% year on year, slowing from the 5.5% increase in June. Confirmation of a slowdown in PPI growth could affect the market’s response in interest rates and foreign exchange.
The US July Consumer Price Index (CPI), released on 12 August, showed a slowdown in growth in line with market expectations, leading to a retreat in expectations for US rate hikes. The focus will be on the extent to which this trend affects the US July PPI.