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USDJPY outlook turned bullish after Japanese bond market intervention and easing U.S.-EU trade tensions lifted the pair. A bullish reversal pattern formed, hinting at a short-term bottom, but the broader trend remains bearish. Market focus now turns to U.S. data for further dollar strength and to Japanese yields for signs of renewed yen support. The USD/JPY outlook has shown a mild shift in sentiment, stemming from the recent surge in US dollar and yen’s weakness. However, the situation is complex due to a mix of monetary policy divergence and short-term political developments. –Are you interested in learning more about Canadian…

The US Dollar Index holds its position after posting more than half a percent gains in the previous session.US Consumer Confidence Index rose to 98.0 in May from an 86.0 reading prior.The Greenback appreciated as US yields fell over Japan’s potential cuts in government debt issuance.The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is steadying after registering more than 0.50% gains in the previous session. The DXY is trading around 99.60 during the European hours on Wednesday. Traders await the FOMC Minutes due later in the North American session.The US…

The rupee fell 23 paise to 85.63 against the US dollar in early trade on Wednesday, dragged down by strengthening American currency and an uptrend in crude oil prices. The local unit also remained under pressure due to increased dollar demand at the end of the month from exporters and banks, even though foreign fund inflow stayed muted amid mixed sentiment in domestic equity markets, forex analysts said. Also, investors moved cautiously, awaiting cues from domestic as well as global macroeconomic data. At the interbank foreign exchange, the domestic unit opened at 85.59 and fell further to 85.71 before trading…

EUR/USD depreciates as the US Dollar strengthens, as US yields weaken due to Japan’s potential cuts in government debt issuance.The Greenback gains ground ahead of the May 7 FOMC Meeting Minutes release on Wednesday.Trump expressed his satisfaction as the EU is speeding up the process to reach a trade deal with the United States.EUR/USD continues its losses for the second successive day, trading around 1.1310 during the Asian hours on Wednesday. The pair depreciates as the US Dollar (USD) draws support and as US yields depreciate following Japan’s indication of potential cuts in government debt issuance, which has boosted global…

Federal Reserve Bank of New York President John Williams said on Wednesday that he wants to avoid inflation becoming highly persistent because that could become permanent.Key quotesImportant that inflation expectations are well anchored.Want to avoid inflation becoming highly persistent because that could become permanent.Way to avoid that is to respond relatively strongly when inflation begins to deviate from the target.Misperceptions about ‘r star’ can lead to long-lasting deviations.We have to be very aware that inflation expectations could shift in any way that could be detrimental.You want the whole curve of inflation expectations to be well-behaved.It’s not to say inflation expectations shouldn’t…

Philip Lane, the chief economist of the European Central Bank, indicated that although the majority of factors suggested a continued decline in euro area inflation, there were also concerns, such as the possibility of unsuccessful EU-US trade negotiations, that could lead to an increase in inflation.He stated in an interview with Germany’s Frankfurter Allgemeine newspaper that they needed to find a middle path when questioned about the implications for interest rate policy.Lane added that they would respond with further interest rate cuts if they saw signs of further falling inflation. However, it was noted that the scope of the discussion…

Durable Goods Orders in the US declined less than expected in April.The US Dollar Index stays in positive territory above 99.00.Durable Goods Orders in the United States (US) declined by 6.3%, or $19.9 billion, in April to $296.3 billion, the US Census Bureau reported on Tuesday. This reading followed a 7.6% increase (revised from 9.2%) reported in March and came in slightly better than the market expectation for a decrease of 7.9%.”Excluding transportation, new orders increased 0.2%,” the press release read. “Excluding defense, new orders decreased 7.5%. Transportation equipment, also down following four consecutive monthly increases, drove the decrease, $20.3…

The Indian rupee and its regional peers weakened on Tuesday as the greenback rose against major peers and Asian equities declined, with rupee traders also pointing to month-end dollar payments from importers that weighed on the local unit. The rupee closed at 85.33 against the U.S. dollar, down 0.3% on the day. The South Asian currency has experienced choppy moves over recent trading sessions, quickly reversing course from a fall past 86 last week to touch a two-week high of 84.78 on Monday and then shedding those gains in the face of a firmer dollar.The rupee’s very-near-tenor implied volatility -…

The Euro extends its rebound from 161.00 to levels above 163.00.The Yen is losing ground alongside a sharp decline in super long-term Japanese yields.ECB’s Lagarde affirmed the Euro’s position as a viable alternative to the US Dollar. The Euro is trading higher for the second consecutive day, still fuelled by the delay of Trump’s deadline to avoid 50% tariffs in the US, while the Yen declines alongside super long-term Japanese yields.The pair extended its rebound from last week’s lows, at 161.00, to levels above 163.00 and is aiming for the 163.45 area, favoured by broad-based Yen weakness.Japan is considering reducing…

The rupee declined 19 paise to 85.29 against the US dollar in early trade on Tuesday amid waning foreign fund inflow and subdued domestic equity market sentiment. Forex traders said though receding crude oil prices supported the local unit, investors stayed cautious ahead of the release of industrial and manufacturing production data for April as well as the first quarter GDP growth numbers, scheduled later this week. At the interbank foreign exchange, the domestic unit opened at 85.15 and declined further to 85.29 against the greenback in initial deals, registering a loss of 19 paise over its previous close. The…