Japanese Yen softens despite fresh currency intervention threats
The USD/JPY pair trades in positive territory around 160.20 during the Asian trading hours on Tuesday. Escalation in the Middle East continues to boost the US Dollar (USD) against the Japanese Yen (JPY). However, fears of imminent currency intervention by Japanese authorities might cap the upside for the pair.
The US economy posted a third straight month of strong job gains in May, with the US Nonfarm Payrolls (NFP) rising by 172K in May, versus the 179K increase (revised from 115K). This figure came in stronger than the market expectation of 85K. Meanwhile, the Unemployment Rate remained unchanged at 4.3% in May, in line with the market consensus.
Traders raise their bets on the US Federal Reserve (Fed) rate hike after the upbeat US jobs data, supporting the Greenback. Markets are now pricing in a 43% chance of a quarter-point rate hike in December, up from just about 14% a month ago, according to the CME FedWatch tool.
Japanese authorities have issued strong verbal warnings, stating that the government is fully prepared to take decisive and appropriate action to protect the domestic currency. This, in turn, could underpin the JPY and create a headwind for the pair. Japan’s Finance Minister Satsuki Katayama on Tuesday emphasized that the stance is unchanged and authorities are prepared for decisive measures.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Has the "only buyer" of Korean stocks left early?
Over the past two months, Samsung and SK Hynix have alone absorbed over $25 billion in sell pressure. Now, Samsung Electronics has completed its buybacks ahead of schedule, and SK Hynix is left with only about $500 million to finish up. On their "exit" day, the KOSPI instantly dropped by 2%. More dangerously, Samsung's Q3 results missed expectations for both revenue and profit. Coupled with ETF rebalancing and options expiry, a "liquidity vacuum" has become a reality, leaving the question of who will step in as the biggest mystery.
Strong Demand for AI Memory Drives Growth Outlook! DA Davidson Raises Micron Technology (MU.US) Target Price to $3,000
DA Davidson reiterated its "Buy" rating on Micron Technology and significantly raised its target price from $2,100 to $3,000. This target price represents nearly 176% upside compared to the stock's closing price of $1,088.00 on Wednesday.
Trump Says Military Actions Against Iran “Must End,” Media Reveals US Military Has Prepared “Pre-Election Strike Plan,” Oil Prices Surge
Although Trump has stated that "the action must be wrapped up," whether the approach will be "soft or tough" remains undecided. More importantly, in order to boost the election campaign, the White House is planning a "limited strike" against Iran before the election, which is in stark contrast to the previous mainstream market expectation of "pre-election restraint." Coupled with the storm in the Gulf of Mexico shutting down over 25% of crude oil production, frequent attacks on oil tankers in the Strait of Hormuz, and record highs in transnational shipping costs, Brent crude oil has risen above $101.
Dollar rises, Euro in peril
Crypto prices
More
