USD/JPY continued to gradually test ¥160 in the New York market, while wait-and-see sentiment strengthened overall. As risk-averse trading spread amid higher crude oil prices and rising long-term interest rates, moves in the major currencies also became increasingly confused.
The New York market saw a slight bias toward a stronger dollar today, although wait-and-see sentiment strengthened overall. USD/JPY continued to test the ¥160 level.
Uncertainty over the situation in the Middle East remains a persistent factor behind higher crude oil prices, while some market participants have warned that globally elevated or rising long-term interest rates could worsen supply-demand conditions. This has heightened market concerns over the growing scale of corporate bond issuance.
EUR/USD continued to move up and down in the upper $1.15 range, holding around $1.1570, near its 100-day moving average. Persistently high energy prices and uncertainty ahead of the release of the FOMC minutes tomorrow have been cited as factors limiting near-term gains.
After the release of UK employment data, views emerged that the weakness of the UK labor market and easing wage growth pressures had been confirmed. Some market participants also believe that there is currently little need for the Bank of England to raise interest rates. Energy price trends are expected to influence the next set of market drivers.