In the European and U.S. foreign exchange markets on the 14th, the dollar is expected to struggle to rise against the yen. If the U.S. inflation data due tonight accelerates, the trend toward higher U.S. interest rates and a stronger dollar is expected to intensify, but gains are likely to be limited by concerns over coordinated intervention by Japan and the United States.
The dollar is expected to face resistance against the yen in the European and U.S. foreign exchange markets on the 14th, with the direction of U.S. inflation data the key focus. If U.S. inflation is expected to accelerate, buying pressure on the dollar could strengthen.
U.S. existing-home sales announced the previous day improved, indicating resilient demand, and the 10-year U.S. Treasury yield recovered to the 5.20% range. While this supported dollar buying, concerns over coordinated intervention by Japan and the United States remain.
The euro held up against the dollar, with EUR/USD trading in the $1.1180 range. USD/JPY struggled to rise in the mid-¥158 range.
The focus in overseas markets from today onward is the U.S. CPI for September. Acceleration in the year-on-year rate, including core inflation, is expected and could support dollar buying on expectations of tighter monetary policy by the Federal Reserve. Market sentiment may also increasingly turn to waiting for the PPI release.
The president of the New York Fed referred to the possibility of a rate hike later this year, but expressed a negative view of the need for action next year, so dollar buying is expected to be limited. Meanwhile, concerns over coordinated intervention by Japan and the United States continue.