In the Euro-U.S. foreign exchange markets on the 29th, USD/JPY is expected to hold in the ¥157.00-¥157.50 range, while dollar selling may ease ahead of the U.S. core PCE price index.
In the Euro-U.S. markets on the 29th, USD/JPY is expected to hold in the ¥157.00-¥157.50 range, with buying pressure on the yen likely to continue. At the same time, dollar selling is expected to ease ahead of the U.S. core PCE release as attention remains focused on the Federal Reserve's restrictive monetary policy.
Through the previous day, a renewed rise in crude oil prices and higher U.S. long-term interest rates supported dollar buying. EUR/USD declined to the 1.1350 range, while USD/JPY held around ¥157.50. The trend toward higher U.S. yields and a stronger dollar is also expected to continue in today's Asian markets.
Looking ahead, U.S. monetary policy is likely to remain a focus, and there is a view that progress toward peace in the Middle East will recede. Dollar selling could lose momentum depending on U.S. economic data, but the dollar is expected to remain difficult to buy as the core PCE price index is forecast to accelerate. Concerns about coordinated intervention through the Japan-U.S. summit are expected to intensify, containing yen selling, although some expect yen appreciation to be limited in the absence of strong market catalysts.