In overseas markets the previous day, USD/JPY recovered to the ¥158 range, while the US manufacturing PMI and services PMI far exceeded market expectations. Dollar buying has strengthened against a backdrop of rising long-term US interest rates, and the dollar-positive tone is expected to continue today, according to reports.
In overseas markets the previous day, USD/JPY recovered to the ¥158 range, while the flash US manufacturing PMI and flash US services PMI significantly exceeded market expectations. Dollar buying strengthened as the 10-year US Treasury yield rose into the 5% range. USD/JPY extended its gains to around ¥158.40, but subsequently traded in the low ¥158 range.
USD/JPY is expected to remain firm today against the backdrop of the dollar's strong underlying tone. The focus will be on whether it can rise sufficiently above levels where concerns about BOJ intervention may cap the upside. During the day, attention will be focused on movements in crude oil prices and long-term US interest rates in out-of-hours trading.
EUR/USD fell to the high $1.13 range under the influence of the stronger dollar and is expected to remain under pressure. EUR/JPY is expected to fluctuate around ¥180 as yen weakness and euro weakness offset each other.
GBP/USD fell to around $1.3220 and is expected to remain under pressure. GBP/JPY is expected to trade mainly around ¥209 while moving sideways in overseas markets.