Because it lacks the strength to move in a directional trade, the USD/JPY continues to trade in a range.
Concerns over the Delta-variant have boosted the value of the US dollar. In Asia-Pacific, there is a COVID-19 outbreak.
On conflicting economic data, the yen stays quiet, with Consumer Confidence being monitored.
USD/JPY is stabilizing near 110.50 after retreating from the YTD high. With moderate gains, the pair swings in a fairly narrow trading area.
The USD/JPY is currently trading at 110.52, up 0.01 percent for the day.
On Tuesday, the US Dollar Index ( DXY), which measures the greenback’s performance versus six major rivals, surged to a one-week high. As investors raced to the US dollar, it reached a high of 92.19.
The US dollar’s appeal was boosted by the rising number of corona cases in the Asia-Pacific area.
The US dollar’s upward rise was also attributed to positive domestic economic data. The S&P CoreLogic Case-Shiller 20-city Home Price Index increased by 14.9 percent, beating market expectations of 14.5 percent. Meanwhile, the President of the Federal Reserve Bank of Richmond stated that the US has made significant progress toward its inflation target and that tapering conversations have begun. Following the remarks, the US dollar gained traction.
The Japanese yen, on the other hand, held steady as retail sales rose 8.2%, beating market estimates of 7.9%. However, gains were offset by a dismal unemployment figure of 3.0%, higher than the market consensus of 2.9 percent.
According to the most recent economic data, Industrial Production increased by 22.8 percent in May, compared to 15.8 percent the previous month on a low base impact. On a month-over-month basis, the readings fell 5.90 percent in May, much below market estimates of 2.4 percent. The mixed data hasn’t fazed the pair.
To measure market sentiment, investors are currently waiting for the Japan Consumer Confidence Data, Housing Starts and Construction Orders data, US ADP Employment Change, and Chicago PMI.
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