Archive for July 16th, 2010

US CPI Data Will Be Critical Driver Of USDJPY Today

The main highlight of today’s session will be the latest reading of US CPI for Jun, where markets are anticipating the headline rate to decelerate -0.1% MoM to 1.2% YoY. Obviously, inflation readings in the US are unlikely to be viewed with any anticipation that a higher reading will prompt a hike just yet, but the release does take on a greater significance in the light of recent Fed rhetoric….

USDJPY Approaches 2010 Low

G10 Advancers and Decliners vs USD
JPY 0.14
CHF -0.29
GBP -0.30
EUR -0.32
USDJPY continued building on its downward move from the past two days to touch 86.98 this morning – approaching the lowest level in 2010. The Yen’s bullish move really picked up when the Fed adjusted its forecasts for future growth and since, has been in a downward spiral gathering steam with each piece of negative economic data coming from the US; first the lower US manufacturing number and a…