In European and US FX trading on the 29th, dollar-yen was expected to remain firm, while yen-buying pressure was likely to persist. Dollar-selling momentum was expected to ease ahead of the US core PCE release.
In European and US FX trading on the 29th, dollar-yen is expected to remain firm. The US president's efforts to restrain yen weakness have brought coordinated intervention into focus, and yen-buying pressure is likely to persist, but dollar selling is expected to ease as markets assess tomorrow's US core PCE price index amid awareness of tighter US monetary policy. With developments related to the Middle East also emerging over the weekend, euro-dollar fell to the ¥1.1350 range, while dollar-yen held around the mid-¥157 range.
US monetary policy is likely to remain a focus in overseas markets from here. With peace in the Middle East receding, the dollar is expected to remain difficult to sell. However, if core PCE accelerates slightly, concern over dollar selling could ease. Meanwhile, yen selling is expected to be restrained as caution over coordinated intervention intensifies following the Japan-US summit. Some believe yen appreciation will be limited by a lack of catalysts.
The schedule for today's European and US markets includes the US Consumer Confidence Index, JOLTS job openings and the S&P/CoreLogic Case-Shiller 20-City Home Price Index. The core PCE price index is expected to be particularly important for future market direction.