The US Dollar is losing momentum following soft US economic data and dovish comments from the Fed. Meanwhile, rising inflation in Japan keeps pressure on the Bank of Japan to normalize policy sooner than expected.
Key Takeaways
- 1.The US Dollar's recent upward momentum has stalled due to weaker-than-expected economic data and dovish rhetoric from Fed officials.
- 2.Tokyo CPI data indicates stronger-than-expected inflation in Japan, increasing pressure on the Bank of Japan to potentially accelerate policy normalization.
Table of Contents
- USD: Upward momentum dampened by US data and Fed rhetoric
- USD HAS BECOME TIGHTLY LINKED TO YIELD SPREADS AGAIN
- JPY: Stronger inflation keeps pressure on BoJ to normalize policy
- KEY RELEASES AND EVENTS
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Authors
Lee Hardman
Securities
USDJPY
Themes
Bank of Japan Policy TighteningFed Policy Normalization
Regions
GlobalAsia PacificUnited StatesJapanGermany