During the early Asian trading session on Wednesday, the USD/JPY pair extends its rally near the 157.15 mark, with traders adopting a cautious stance ahead of pivotal events. Among these, the release of the US Consumer Price Index (CPI) data stands out, alongside the Federal Open Market Committee (FOMC) monetary policy meeting and subsequent press conference.
Last week’s robust US jobs data, surpassing expectations, has fueled speculations that the Federal Reserve (Fed) might maintain higher interest rates for an extended period, providing a bolstering effect for the Greenback. Market participants are keenly eyeing the forthcoming US CPI inflation figures for further guidance. Projections suggest a 3.4% year-on-year increase in May’s CPI, with core CPI anticipated to rise by 3.5% year-on-year. The Fed is widely expected to maintain its current rates during its June meeting.
On the Japanese Yen (JPY) front, the Bank of Japan (BoJ) is anticipated to keep interest rates unchanged in its forthcoming meeting on Friday. Furthermore, a Reuters poll indicates that nearly two-thirds of economists expect the BoJ to initiate tapering of its monthly bond purchases, currently at around 6 trillion yen ($38 billion). Concurrently, the ongoing interest rate disparity between the US and Japan continues to exert downward pressure on the Japanese Yen (JPY) against the US Dollar (USD), propelling the USD/JPY pair further.
Related Topics:
Current Yen Exchange Rate: What is 1000 Yen in Pounds?
Current Yen Exchange Rate: What Is 25000 Yen to Dollar?
Current YEN Exchange Rate: What Is 500 Japanese Yen to USD?
