Despite the fact the North American data printed positively on Tuesday, the US Dollar has softened against nearly all of its major peers. This is as a result of mounting negative sentiment towards the Federal Reserve after Governor Jerome Powell indicated rising inflation as a new target for hiking rates. The US Housing Market Index increased from 54 to 58 despite the median market forecast of a rise to only 55.
The US Dollar to Japanese Yen exchange rate is currently trending in the region of 116.7672.
Earlier…
As the Japanese economy continues to struggle following the recent dip into recession, the US Dollar to Japanese Yen (USD/JPY) exchange rate has strengthened considerably. However, disappointing US data on Monday has caused the ‘Greenback’ (USD) to generally slump against the majority of its most trade currency competitors.
The US Dollar to Japanese Yen exchange rate is currently trending in the region of 116.6704.
US Dollar (USD) Slumps ahead of Data
As traders await Tuesday’s US data, the US Dollar has generally softened against most of its major peers. The Housing Market Index and Net Long-term TIC Flows data has the most potential to provoke ‘Greenback’ volatility.
Monday’s domestic data initiated a large US Dollar downtrend. Of particular detriment was Industrial Production, which declined beyond the median market forecast of a drop from 0.8% to 0.2%, with the actual result falling to -0.1%.
The US Dollar to Japanese Yen exchange rate has dropped to a low today of 116.1102.
Stimulus Speculation Boosts Yen (JPY) Downtrend
After the Japanese economy fell into yet another recession, speculation has been rife that stimulus measures will have to be introduced to shore up the flagging economy. ‘Economy Minister Akira Amari told reporters yesterday in Tokyo there’s a high chance of a stimulus package. Etsuro Honda, an adviser to Abe, said a 3 trillion yen ($26 billion) program was appropriate and should go toward measures that directly help households, such as child care support,’ stated Toru Fujioka, writing for Bloomberg.
Further declination is as a result of Prime Minister Shinzo Abe’s call for an early election, and his suspension of a scheduled sales-tax increase.
US Dollar to Japanese Yen (USD/JPY) Exchange Rate Forecast to Strengthen
With sentiment towards the Japanese Yen reaching a peak of negativity, the USD/JPY exchange rate is very likely to strengthen. That being said, if the US data due on Tuesday afternoon prints negatively, the US Dollar will decline significantly and the USD/JPY exchange rate is likely to recover a little.
The US Dollar to Japanese Yen exchange rate has reached a high today of 116.9468.
Japanese Yen (JPY) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Japanese Yen,
,US Dollar,0.0085,
Japanese Yen,,Euro,0.0068,
Japanese Yen,,Pound,0.0054,
Japanese Yen,,Australian Dollar,0.0098,
US Dollar,,Japanese Yen,116.5679,
Euro,,Japanese Yen,145.8734,
Pound Sterling,,Japanese Yen,182.4577,
Australian Dollar,,Japanese Yen,101.5537,
[/table]
