On 11 August, with Japan closed for a public holiday, attention is focused on the impact of foreign exchange intervention, expectations of further intervention, the direction of the US dollar, Japanese yen and euro, and the US Consumer Price Index due tomorrow.
This article discusses the impact of foreign exchange intervention in the FX market and expectations of further intervention, with a focus on movements in the US dollar/yen, euro/yen and US dollar/European currency pairs. It outlines the market's focus on how long the intervention's effects will last and the possibility of further intervention.
It then addresses the impact of major US economic data releases on exchange rates, highlighting the US Consumer Price Index release scheduled for tomorrow. Depending on the results, the direction of the dollar market could shift again.
Japan will also be closed for a public holiday, which could limit trading activity in European and US markets at times. The article also notes the market's alertness to intervention and the risk of exchange-rate volatility. Market participants are focused on whether intervention will be carried out again and on its potential scale.
The article lists factors to watch from this week onward, including the direction of the US dollar, yen and European currencies, the outlook for US policy and interest rates, and the schedule for major economic data releases, providing reference points for future trading strategies.