USD/JPY retreats from 110.80 ahead of US data
- USD/JPY pauses the gain after testing monthly highs near 110.80.
- US Dollar Index skids below 93.00 upon disappointing CPI data.
- The yen gains on its safe-haven appeal despite the concerns of the Delta variant.
After testing the recent highs on Wednesday, USD/JPY retreats in the Asian session on Thursday. A pullback correction in the US dollar sponsored the downside performance of the pair.
At the time of writing, USD/JPY is trading at 110.43, up 0.02 % for the day.
The US Dollar Index, which tracks the performance of the greenback against its six major rivals, trades below 93.00 with 0.16% losses amid falling US Treasury yields.
The US 10-year benchmark Treasury yields slip to 1.33% after the US inflation rate came in accordance with the market expectations. The readings bolstered the narrative of stabilising concern of inflation and easing concerns about a pullback of Fed’s stimulus soon.
The US Consumer Price Inflation (CPI) came at 5.4% in July, marginally above the market expectations of 5.3%.
Meanwhile, the comments from the Dallas Fed President Fed Kaplan weighed on the greenback. He said Fed should begin bond taper in October.
On the other hand, the Japanese yen gained on its safe-haven appeal even the coronavirus cases remained a concern for the economy.
As for now, investors wait for the US Initial Jobless Claims data to gauge the market sentiment.
USD/JPY additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
