Nervous trading centered on the dollar is expected in overseas markets from here. The dollar came under increased selling pressure at times following reports that the U.S. Treasury had announced plans to double its purchases of long-term Treasury bonds, while the dollar index remains in lower territory.
Nervous trading centered on the dollar is expected in overseas markets from here. U.S. Treasury yields fell sharply at times, accompanied by increased selling pressure on the dollar, following the announcement that the U.S. Treasury would double its purchases of long-term Treasury bonds. Although the dollar has since shown some rebound, its downward trend remains intact. After falling below its 200-day moving average, the dollar index remains below that level. Euro/dollar is trading around the $1.17 level, while sterling/dollar is in the mid-$1.36 range.
Dollar/yen trading has centered around ¥159, against a backdrop of the dollar's downward trend alongside selling pressure on the yen. The yen-selling factors cited include Japan's CPI growth being within the expected range and an expanding trade deficit. It has been suggested that concerns about intervention may increase as the rate approaches ¥160. Euro/dollar and sterling/dollar are also seen as unlikely to move in a single direction.
With an event involving the U.S. Treasury Secretary approaching, fiscal consolidation measures are scheduled to be announced over the weekend and into the start of next week. A press conference on "devastating sanctions" against Iran is also scheduled for the 24th. In the Middle East, there are still no signs of significant progress in developments between the United States and Iran over the Strait of Hormuz. Factors including war costs, sanctions, higher oil prices and a renewed acceleration in inflation are expected to support long-term U.S. Treasury yields at times, and a shift toward dollar buying cannot be ruled out.
Upcoming economic data include August flash PMI figures for France, Germany, the euro area, the United Kingdom and the United States, as well as Canadian retail sales for June. The ECB's euro-area consumer inflation expectations for July will also be closely watched. The outlook is for continued monitoring of market developments rather than price movements directly linked to investment decisions.