Dollar buying prevailed in the London market, and USD/JPY recovered to the 154 level ahead of the ECB Governing Council meeting and the US PPI release. Higher oil prices and movements in US Treasury yields were behind the move.
Dollar buying prevailed in the London market, while NY crude oil futures rose back to the 97 level and the US 10-year Treasury yield reached its highest level since 2023. Against this backdrop, USD/JPY moved up from the 153 range, updating its high and rising to around 154.
Meanwhile, with the ECB Governing Council's monetary policy announcement, economic projections and President Lagarde's press conference ahead, markets are increasingly focused on the US PPI release, initial jobless claims and existing home sales. EUR/USD is in the low 1.16 range and GBP/USD is in the low 1.35 range, with gains limited.
Following the rise in USD/JPY, EUR/JPY moved up from the low 179 range to the upper 179 range, while GBP/JPY rose to the upper 208 range. Cross-yen pairs are broadly moving toward yen weakness.
A 0.25% hike in the ECB's policy rate is the market consensus, with attention focused on any indication of further rate hikes and comments on whether the tightening cycle has come to an end.