USD/JPY: Refreshes multi-month high near 109.70 ahead of US CPI
- USD/JPY extends the previous day’s gains on Thursday.
- US dollar remains steady above 90.00 pushing the pair higher.
- Yen falters in the global reflation trade.
The USD/JPY pair kicks off the Asian session on Thursday on a higher note. The pair gathers momentum in the late New York trading hours and continues to trade with positive bias.
At the time of writing, USD/JPY trades at 109.66, up 0.04% for the day.
The US Dollar Index (DXY), which indicates the performance of the greenback against six major rivals, remains grounded near the 90.10 mark ahead of the US Consumer Purchase Index (CPI) report.
Investors remain cautious about the rising inflationary fear on the robust US economic data. The US economy is successfully coming out of the pandemic slump due to the vaccine rollout and the government fiscal stimulus and spending. The appreciative move in the US dollar drives the pair’s performance.
On the other hand, the Japanese yen is struggling with the domestic economic submissive outlook. The yen suffers as global markets are bracing for interest rates to begin creeping higher almost in every developed economy except Japan. On the contrary, deflation and crisis settings continue to exert pressure on the yen’s performance.
As for now, Investors are eagerly waiting for the US Consumer Price Index (CPI), Initial Jobless claims (June 4) to gauge the market sentiment.
The higher readings could strengthen the outlook for the higher interest rates adding attractiveness to the US dollar and vice versa.
USD/JPY additional levels
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June 9, 2021 at 03:48PM