- The DXY dollar index is softer, primarily influenced by developments in Japan.
- Japanese investors observe minimal official resistance to rising JGB yields, signaling a potential BOJ rate hike in the summer.
- The OIS market suggests a 21bp hike in July, raising the policy rate to 0.75%.
- The yen has strengthened unexpectedly despite modest interest rate changes, with speculative positioning favoring the yen.
- Further short-term USD/JPY declines are possible, depending on January Japan CPI data.
- However, significant moves below USD/JPY 150 are not anticipated, with preference for the yen to outperform against the euro.
- The US dollar remains largely supported.
- FOMC minutes indicated that the Fed requires more evidence before considering rate cuts, maintaining a cautious stance.
- Vice Chair Philip Jefferson highlighted the positive effects of wealth across income levels and healthy household balance sheets.
- FX markets are also reacting to President Trump's comments on a potential new US-China trade deal, affecting USD/CNH slightly but not significantly altering global currency ratings.
- DXY may find support under 107 unless there is a substantial increase in US weekly jobless claims data.
- Japanese investors observe minimal official resistance to rising JGB yields, signaling a potential BOJ rate hike in the summer.
- The OIS market suggests a 21bp hike in July, raising the policy rate to 0.75%.
- The yen has strengthened unexpectedly despite modest interest rate changes, with speculative positioning favoring the yen.
- Further short-term USD/JPY declines are possible, depending on January Japan CPI data.
- However, significant moves below USD/JPY 150 are not anticipated, with preference for the yen to outperform against the euro.
- The US dollar remains largely supported.
- FOMC minutes indicated that the Fed requires more evidence before considering rate cuts, maintaining a cautious stance.
- Vice Chair Philip Jefferson highlighted the positive effects of wealth across income levels and healthy household balance sheets.
- FX markets are also reacting to President Trump's comments on a potential new US-China trade deal, affecting USD/CNH slightly but not significantly altering global currency ratings.
- DXY may find support under 107 unless there is a substantial increase in US weekly jobless claims data.
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1. AccuTrade System:
tradingview.com/v/yDFPnb1J/
2. Signal Performance:
thedailyfx.com/performance/
3. We provide Free TradingView Premium and Essential Membership.
tradingview.com/v/yDFPnb1J/
2. Signal Performance:
thedailyfx.com/performance/
3. We provide Free TradingView Premium and Essential Membership.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.