Hot US CPI may see USD/JPY bulls charge at 160 again
May 14 (Reuters) -USD/JPY bulls might stamp their hooves before charging towards the 160 level again if U.S. CPI data comes in hotter than expected on Wednesday.
USD/JPY rose beyond 160 on April 29 - the catalyst for the first of two rounds of suspected yen-buying FX intervention from Japan, with a sub-152 low plumbed during the second of those suspected intervention rounds on May 3.
U.S. April CPI is forecast up 0.4% on the month, 3.4% on the year. Core CPI is forecast up 0.3% on the month, 3.6% on the year. The numbers will be revealed on Wednesday at 1230 GMT.
Hotter than expected CPI data could lift the dollar by reducing the perceived probability of a Federal Reserve rate cut in July or September.
CFTC data on FX positioning showed hedge funds and speculators slashed their net yen short position by 20% to 134,922 contracts, its lowest level since March, in the week ended May 7.
Related comment: nL1N3H20MN
For more click on FXBUZ
USDJPY https://tmsnrt.rs/3R7GJxd
(Robert Howard is a Reuters market analyst. The views expressed are his own)
</body></html>Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
