Japanese Yen Soars on Soft US CPI and US Dollar Pummelling. Where to for USD/JPY?
Japanese Yen, USD/JPY, US Dollar, FOMC, Fed, Kashkari, Evans, Daly- Talking Points
- USD/JPY crashed lower after US CPI but has since recovered a big figure
- US CPI missed estimates and the market appears to think rate cuts are ahead
- If the Fed repudiates the perception of lower rates, where will USD/JPY go?
USD/JPY
The Japanese Yen has appreciated dramatically in the aftermath of US CPI coming in softer than anticipated.
It gained around 1.6% against the US Dollar in the North American session, with USD/JPY trading as low as 134.03 at one stage. The US Dollar is weaker against every major currency.
For the record, headline US CPI printed at 8.5% year-on-year to the end of July instead of 8.7% forecast and 9.1% previously. Core US CPI was the same as the prior month at 5.9%, but lower than 6.1% anticipated.
US yields initially dipped across the curve on the news but then retraced most of the slide after Fed speakers hosed down hopes of rate…
