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USD/JPY RISES TO NEAR 148.00 AS CALM MARKET SENTIMENT DENTS YEN’S APPEAL

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  • USD/JPY gains to near 148.00 as appeal for the Japanese Yen as safe-haven has diminished.
  • The US inflation data will influence market speculation for Fed rate-cut size in September.
  • Investors see the US headline and core PPI growing at a slower pace on monthly as well as annual basis.

The USD/JPY pair jumps to near 148.00 in Tuesday’s European session. The asset gains as the Japanese Yen (JPY) weakens due to a sharp decline in safe-haven flows. Investors’ appetite for risky assets has improved as fears of a potential United States (US) recession have diminished significantly.

Worries about US slowdown prompted by weak Nonfarm Payrolls (NFP) report for July. However, a decline in the Initial Jobless Claims for the week ending August 2 suggested that labor market conditions are not as bad as expected.

Meanwhile, the market sentiment is upbeat with US Consumer Price Index (CPI) for July on the horizon. S&P 500 futures have posted decent gains in the European session. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, holds the key support level of 103.00. 10-year US Treasury yields edge higher to near 3.91%.



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