Market news
14.08.2023, 14:23

USD/JPY climbs confidently above 145.00 amid cautious market mood

  • USD/JPY refreshes nine-month high above 145.00 amid risk-off market mood.
  • Economic challenges in China improve the appeal for the US Dollar.
  • US Retail Sales are seen expanding by 0.4% in July, accelerating from the 0.2% increase recorded for June.

The USD/JPY pair printed a fresh nine-month high at 145.57 on Monday, capitalizing on bearish market sentiment. The asset continues its five-day winning streak amid sheer strength in the US Dollar as investors remain worried about China’s economic outlook.

S&P500 prints some losses in early New York, portraying caution due to modest recovery in the United States Consumer Price Index (CPI) for July. The US Dollar Index rallies to near 103.46 amid improvement in its appeal as a safe haven.

Investors are worried about Chinese economic prospects as the economy is facing deflation due to weak demand and declining exports. Also, Chinese firms struggle to raise the price of goods and services at factory gates. This has improved the appeal of the US Dollar.

After a slower-than-expected inflation increase and a decent rebound in Producer Price Index (PPI) in the US economy for July, investors shift their focus to the Retail Sales data. As per the consensus, Retail Sales are seen expanding 0.4% in July, accelerating from the 0.2% increase recorded for June.  A similar performance is expected for retail sales excluding autos.

Meanwhile, the Japanese Yen remains under pressure as Japan’s Ministry of Finance (MoF) doesn’t deliver any sign of stealth intervention. Preliminary Gross Domestic Product (GDP) for Q2 grew at 0.8% vs. Q1 growth of 0.7%. On an annualized basis, GDP expanded at 3.1% vs. the former release of 2.7%. An absence of monetary policy support from the Bank of Japan (BoJ) keeps the Japanese Yen on the tenterhooks.

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location