- The prevailing cautious mood continues to benefit the JPY’s safe-haven status.
- Increasing Fed rate cut bets weigh on the USD and adds to the weaker tone.
- Traders now look forward to the US monthly retail sales data for some impetus.
The USD/JPY pair was seen consolidating near the lower end of its weekly trading range, below mid-108.00s through the Asian session on Friday.
The pair struggled to capitalize on the overnight attempted bounce and remained depressed on the back of concerns over a further escalation in trade tensions between the world's two largest economies.
Apart from the trade-related nervousness, increasing likelihood that the Fed will cut interest rates by the end of this year kept the US Dollar bulls on the defensive and kept exerting some pressure on the major.
The incoming softer US economic data - including last Friday's disappointing release of May monthly jobs report, coupled with slowing inflation forced investors to start pricing in at least two rate cuts in 2019.
The mentioned factors contributed to a weaker tone surrounding the US Treasury bond yields, struggling near multi-year lows and further collaborating to the pair's weaker tone on the last day of the week.
Moving ahead, today's US economic docket - highlighting the release of monthly retail sales data, will now be looked upon to grab some short-term trading opportunities later during the early North-American session.
The key focus, however, will be on next week's FOMC monetary policy meeting, which might provide some fresh clues over the central bank's near-term policy outlook and eventually provide a fresh directional impetus.
Technical levels to watch
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 drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price bulls keenly await US PCE Price Index on Friday before placing fresh bets
Gold price (XAU/USD) continues with its struggle to make it through the $2,200 mark on Thursday and oscillates in a narrow trading band through the early part of the European session.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
The other terminal rate: How far will policy rates be cut?
Recent communication by the Federal Reserve and the ECB has made it clear that the first cut in official interest rates is coming. Both central banks are saying the same but the ECB communication is more opaque than that of the Fed.