The US Dollar Index (DXY), which measures the value of the US Dollar against a basket of currencies, is experiencing sustained losses as it sinks below 107.50, its lowest level this week.
The British pound has stalled a bit during the trading session on both Wednesday and Thursday, and as I look at the chart, the 1.2350 level is an area that I think a lot of people will be paying close attention to.
The US dollar rallied a bit during the trading session here on Thursday, as it looks like the 0.91 level is being targeted. If we can break the market above here, and I don't see any reason why we can't, then we will start to ask questions to 0.92.
The US dollar is broadly lower. The tariff-threat inspired gains stalled and the BOJ rate hike and stronger PMI in Europe have dragged the greenback lower against all the G10 currencies.
Japan’s CPI rose by 3.0% in December. The Bank of Japan hiked rates by 25-bps on Friday morning, boosting the yen. Data revealed a slight increase in US jobless claims last week.
The euro drifted a little bit lower during the trading session on Thursday as we continue to hang around the 0.8450 level. The pound of course has given up some strength for a while, but I think a lot of this is just simple profit taking.
The USD/JPY pair declined to 155.13 on Friday, as the yen gained robust support following the Bank of Japan’s (BoJ) decision to raise its interest rate during the January meeting.
Asian stocks advanced, especially Chinese firms, following comments by U.S. President Trump suggesting a more lenient approach towards tariffs on China.
The Bank of Japan often finds itself navigating between a rock and a hard place, attempting to balance these complex forces in a tightrope monetary policy act.
.thumb.png.5449c080a1e39f68ddd3c97e871701c3.png)
