Financial Mirror on Nostr: Dollar extends losing streak ahead of US CPI - Financial Mirror ========== The USDJPY ...
Dollar extends losing streak ahead of US CPI - Financial Mirror
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The USDJPY pair dropped sharply to 155.50 in early European trading on Wednesday as the US Dollar extends its losing spell for the third trading session. The DXY Dollar has dropped below 105.00 and investors are confident that the Federal Reserve will start reducing interest rates from September. Speculation for the Fed to begin lowering the borrowing rate remains firm despite the Producer Price Index (PPI) growing faster than the consensus in April. Investors remain confident of the rate cuts as Jerome Powell ruled out expectations of further policy-tightening. However, the Fed Chair emphasised keeping interest rates at their current levels for a longer period. The US Consumer Price Index data for April is awaited later in the day, which will provide a clear picture of the interest rate outlook. Annual headline CPI is forecast to have softened to 3.4% from 3.5% in March, while core inflation is anticipated to decelerate to 3.6% from 3.8%. Monthly headline and core CPI are expected to have grown at a slower pace of 0.3% from 0.4%. On the Tokyo front, Japan's Q1 Gross Domestic Product (GDP) data is awaited on Thursday, with economists expecting a contraction of 0.4% after expanding by 0.1% in the last quarter of 2023. The Japanese economy is estimated to have contracted significantly by 1.5% on an annualised basis. Weak GDP growth will raise concerns over Bank of Japan's plan to continue the policy-tightening cycle.
#UsDollar #UsCpi #InterestRates #FederalReserve #Usdjpy #ProducerPriceIndex #JeromePowell #UsConsumerPriceIndex #JapanGdp #BankOfJapan
https://www.financialmirror.com/2024/05/15/dollar-extends-losing-streak-ahead-of-us-cpi/
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The USDJPY pair dropped sharply to 155.50 in early European trading on Wednesday as the US Dollar extends its losing spell for the third trading session. The DXY Dollar has dropped below 105.00 and investors are confident that the Federal Reserve will start reducing interest rates from September. Speculation for the Fed to begin lowering the borrowing rate remains firm despite the Producer Price Index (PPI) growing faster than the consensus in April. Investors remain confident of the rate cuts as Jerome Powell ruled out expectations of further policy-tightening. However, the Fed Chair emphasised keeping interest rates at their current levels for a longer period. The US Consumer Price Index data for April is awaited later in the day, which will provide a clear picture of the interest rate outlook. Annual headline CPI is forecast to have softened to 3.4% from 3.5% in March, while core inflation is anticipated to decelerate to 3.6% from 3.8%. Monthly headline and core CPI are expected to have grown at a slower pace of 0.3% from 0.4%. On the Tokyo front, Japan's Q1 Gross Domestic Product (GDP) data is awaited on Thursday, with economists expecting a contraction of 0.4% after expanding by 0.1% in the last quarter of 2023. The Japanese economy is estimated to have contracted significantly by 1.5% on an annualised basis. Weak GDP growth will raise concerns over Bank of Japan's plan to continue the policy-tightening cycle.
#UsDollar #UsCpi #InterestRates #FederalReserve #Usdjpy #ProducerPriceIndex #JeromePowell #UsConsumerPriceIndex #JapanGdp #BankOfJapan
https://www.financialmirror.com/2024/05/15/dollar-extends-losing-streak-ahead-of-us-cpi/