- USD/JPY gained traction in the early American session.
- 10-year US Treasury bond yield is up more than 1% on Tuesday.
- USD outperforms its rivals after CPI inflation data.
After edging lower to 110.20 area during the European trading hours, the USD/JPY pair gained traction and reached a daily high of 110.55. As of writing, the pair was up 0.17% on the day at 110.52.
Price pressures continue to increase in US
Rising US Treasury bond yields and the broad-based USD strength seem to be boosting USD/JPY in the second half of the day.
The data published by the US Bureau of Labor Statistics revealed on Tuesday that the annual Consumer Price Index (CPI) in the US rose to 5.4% in June from 5% in May. With this print surpassing the market expectation of 4.9%, the US Dollar Index advanced to 92.70 area and the benchmark 10-year US Treasury bond yield was last seen gaining more than 1% on a daily basis at 1.388%.
Further details of the publication revealed that the Core CPI climbed to 4.5% on a yearly basis from 3.8%.
US Inflation Quick Analysis: Dollar selling opportunity? Fed could shrug off clunker-driven CPI.
Meanwhile, the S&P Futures are down 0.3% ahead of the opening bell, suggesting that the USD is likely to preserve its strength in the second half of the day.
There won't be any other macroeconomic data releases from the US in the remainder of the day. On Wednesday, Industrial Production and Capacity Utilization data will be featured in the Japanese economic docket.
Technical levels to watch for
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
AUD/USD stand firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
USD/JPY climbs relentlessly ahead of BoJ meeting
The USD/JPY extends its uptrend despite verbal intervention from the Minister of Finance. The wide differential between US and Japanese interest rates is seen as a major factor contributing to the rise. The idea that a lot is already priced into the US Dollar could limit USD/JPY upside.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.