USD/JPY drops to near 157.80 as US-EU disputes batter US Dollar

USD/JPY falls to near 157.80 as the US Dollar extends its downside.
US-EU disputes keep battering the US Dollar.
Japan PM Takaichi announces snap election, and vows to cut consumption tax.

Sagar Dua FXStreet

The USD/JPY pair is down 0.2% to near 157.80 during the European trading session on Tuesday. The pair is under pressure as the US Dollar (USD) underperforms across the board amid ongoing disputes between the United States (US) and the European Union (EU) over Greenland’s sovereignty.

During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.56% lower to near 98.45.

The US Dollar faces intense selling pressure as US President Donald Trump's tariff threats on several EU nations and the United Kingdom (UK), in an attempt to pressure the continent to allow Washington to purchase Greenland, have raised concerns about the long-term state of relations with the continent.

However, US Treasury Secretary Scott Bessent has confirmed in his comments at the World Economic Forum (WEF) in Davos that Washington doesn’t intend to withdraw NATO’s membership.

US Treasury Secretary Bessent also stated that White House will announce the Federal Reserve’s (Fed) Chair Jerome Powell’s successor as early as next week.

Though the Japanese Yen (JPY) is outperforming the US Dollar, the former is underperforming its other peers as Japan's Prime Minister (PM) Sanae Takaichi’s plans to cut the consumption tax point to looser fiscal conditions going ahead.

Japan's PM Takaichi announced plans to dissolve the parliament’s lower house on January 23, and vowed to suspend the consumption tax for two years.

Going forward, the major trigger for the Japanese Yen will be the Bank of Japan’s (BoJ) monetary policy announcement on Friday.

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

EUR/USD sticks to positive bias above 1.1800 as trade jitters undermine USD

The EUR/USD pair builds on the previous day's modest gains and attracts some buyers for the second straight day on Thursday amid a softer US Dollar. Spot prices, however, lack bullish conviction and trade around the 1.1815-1.1820 area during the Asian session, up 0.10% for the day.

GBP/USD bounces as soft CPI boosts BoE cut bets

GBP/USD rose 0.42% on Wednesday, recovering toward 1.3600 in a session shaped by softer-than-expected UK inflation data and broad US Dollar weakness. The pair had been consolidating in a tight range between about 1.3450 and 1.3520 for the past few days following the sharp pullback from the late-January high near 1.3870, and Wednesday's move pushed price action back onto the high side of key moving averages.

Gold struggle with $5,200 extends ahead of more US-Iran talks

Gold is replicating the recovery moves seen in Wednesday’s Asian trading early Thursday, as buyers continue to flirt with the $5,200 level. Sustained US Dollar weakness and looming US-Iran talks aid the bright metal’s rebound.

Michael Saylor unveils Bitcoin-backed "Digital Credit" vision at Strategy World

Strategy CEO Michael Saylor delivered a keynote titled "Digital Credit" on Tuesday at Strategy World, positioning Bitcoin as the foundation of a new financial system built on what he described as "digital capital."

Nvidia delivers another monster earnings report, and forecasts big things to come

It was another monster earnings report from Nvidia for fiscal Q4. Revenues were $68.1bn, smashing estimates of $65bn. Gross profit margin was a healthy 75%, up from 73.5% in the prior quarter, and the outlook for this quarter was monstrous.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.