On Monday, the USD/JPY rose for the second trading day in a row.
The US Dollar Index is clinging to little daily advances.
The focus now moves to the June CPI statistics from the United States.
The USD/JPY pair began the new week calmly, moving sideways a bit above 110.00 during European trading hours. The pair rose marginally in the second half of the day as the greenback began to gain momentum, and it was last seen trading at 110.35, up 0.18 percent on the day.
The USD’s market valuation remained the principal driver of USD/JPY swings in the absence of significant macroeconomic data releases. The greenback found demand on Monday, thanks to a cautious market tone ahead of this week’s important data releases and events, and the US Dollar Index (DXY) soared to a daily high of 92.42 before entering a consolidation phase. The DXY is currently trading at 92.25, up 0.17 percent.
Following Friday’s big advance, respectable demand in the 10-year US Treasury note auction on Monday prevented the benchmark 10-year US T-bond yield from rising further, limiting the USD’s gains.
The Consumer Price Index (CPI) statistics for June will be released by the US Bureau of Labor Statistics on Tuesday. The CPI is expected to fall to 4.9 percent on an annual basis from 5% in May, according to investors. A stronger-than-expected reading could support the USD and vice versa.
In a two-day testimony later this week, FOMC Chairman Jerome Powell will provide the Fed’s semiannual assessment on the status of the US economy./n
