USD/JPY edges lower to 161.55 in Thursday’s early Asian session.
Fed’s Powell gave a cautious nod to recent progress on inflation.
The growing speculation that BoJ will hike in the July meeting boosts the JPY.
The USD/JPY pair trades on a softer note around 161.55, snapping the three-day winning streak on Thursday during the early Asian session. The pair edges lower amid the decline of the US Dollar (USD) broadly. Investors will take more cues from the US Consumer Price Index (CPI) data for June, which is due on Thursday. The Federal Reserve’s (Fed) Raphael Bostic is set to speak.
Fed Chair Jerome Powell acknowledged the progress on inflation, yet Powell stated that it would not be appropriate to cut the policy rate until they gain greater confidence in inflation heading sustainably towards the Fed’s 2% target.
Traders anticipate the US Fed to maintain the benchmark interest rate in the 5.25% to 5.5% range in its next meeting on July 30-31. The US CPI inflation report on Thursday will be closely watched, and further progress on inflation could lead to key changes in their policy statement that pave the way for a September rate cut.
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