- USD/JPY corrects to near 150.00 as USD Index edges down.
- The US Retail Sales are forecasted to contract by 0.1% in January.
- The Japanese economy has entered a technical recession after contracting in the last two quarters of 2023.
The USD/JPY extends its correction to near the psychological support of 150.00 in Thursday’s European session. The asset has come under pressure as the US Dollar Index (DXY) and bond yields have dropped ahead of January's United States Retail Sales data.
S&P500 futures have posted decent gains in the London session, indicating a revival in the risk appetite of the market participants. The broader market outlook is still uncertain as investors pare bets in favor of rate cuts by the Federal Reserve (Fed) for the May monetary policy meeting.
The Fed's expectations for a rate-cut move have shifted for the June meeting as the consumer price inflation for January remained hotter than expected. Contrary, Chicago Fed Bank President Austan Goolsbee said on Wednesday that one bad inflation data is insufficient to impact the broader trend, which indicates that price pressures are coming down to the 2% target. Austan Goolsbee warned that a hawkish narrative for a more extended period could dampen the labor market conditions.
The US Dollar Index (DXY) has corrected to near 104.60 from a three-month high of 105.00. Going forward, investors will focus on the US Retail Sales data, which will be published at 13:30 GMT. According to the consensus, Retail Sales were contracted by 0.1%.
On the Tokyo front, the Japanese Yen strengthens despite investors' hope that the Bank of Japan (BoJ) will not exit the expansionary policy stance soon. The expectations of easy policy unwinding have waned as the Japanese economy has surprisingly entered into a technical recession. The Q4 GDP contracted by 0.1%, while investors forecasted an expansion of 0.3%.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD declines toward 1.0850 after US data
EUR/USD extends its downward correction toward 1.0850 in the American session. The US Department of Labor reported that there were 222,000 first-time application for unemployment benefits last week, helping the USD hold its ground and causing the pair to stretch lower.
GBP/USD corrects to 1.2650 area on modest USD recovery
After touching its highest level in over a month at 1.2700, GBP/USD reversed its direction and declined toward 1.2650 on Thursday. The modest USD rebound seen following Wednesday's sharp decline makes it difficult for the pair to regain its traction.
Gold finds resistance near $2,400, retreats below $2,380
Gold advanced toward $2,400 on Wednesday as US Treasury bond yields pushed lower following the April inflation data. The recovery in US yields combined with the US Dollar's resilience after Jobless Claims data, however, causes XAU/USD to retreat toward $2,370 on Thursday.
Is the crypto bull run back? Premium
Bitcoin’s ascent to $65,000 seems to have breathed hope into the choppy crypto markets. Some altcoins have shot up 10% to 20% due to BTC’s comeback. Investors wonder if this is the resumption of the crypto bull run.
BRICS, the West and the rest – global trade hubs and de-dollarization
World trade is fragmenting into opposing blocks, warns the IMF. The BRICS and their allies are distancing themselves from the West. BRICS are attempting to de-dollarize and replace SWIFT to circumvent the threat of sanctions.