Here's what you need to know on Friday, April 26:
The Japanese Yen (JPY) remains under downward pressure and is trading at its weakest level in over three decades against the US Dollar following the Bank of Japan's (BoJ) decision to leave monetary policy settings unchanged. Later, the United States Bureau of Economic Analysis will publish data on the Personal Consumption Expenditure (PCE) Price Index, the inflation indicator preferred by the Federal Reserve (Fed) for the month of March.
US Core PCE Preview: Fed's Preferred Inflation Gauge to Moderate in March Annual Reading
The BoJ announced early on Friday that Board members had decided to keep the interest rate target at 0%-0.1%. The BoJ removed from its monetary policy statement the reference to the monthly purchase of Japanese government bonds worth about 6 trillion yen and reiterated that it will adjust the degree of monetary easing if the inflation trend continues to rise. At the press conference after the meeting, BoJ Governor Kazuo Ueda stated that the change in prolonged weakness of the Yen “is not zero” and added that the effects of exchange rates on the economy include positive. At the time of writing, the USD/JPY It is trading at lows since May 1990 above 156.50, up more than 0.7% on the day.
Current rate of the Japanese Yen
Below is the percentage evolution of the Japanese Yen (JPY) against the main currencies. The JPY was the weakest currency against the Australian Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.01% | 0.06% | -0.08% | -0.26% | 0.73% | -0.01% | -0.02% | |
| EUR | 0.00% | 0.04% | -0.06% | -0.26% | 0.76% | 0.00% | -0.01% | |
| GBP | -0.05% | -0.06% | -0.12% | -0.33% | 0.71% | -0.08% | -0.07% | |
| CAD | 0.08% | 0.08% | 0.12% | -0.21% | 0.81% | 0.05% | 0.06% | |
| AUD | 0.26% | 0.27% | 0.33% | 0.21% | 1.03% | 0.25% | 0.26% | |
| JPY | -0.74% | -0.76% | -0.73% | -0.81% | -1.06% | -0.79% | -0.79% | |
| NZD | 0.02% | 0.04% | 0.10% | -0.03% | -0.23% | 0.78% | 0.02% | |
| CHF | 0.03% | 0.03% | 0.09% | -0.03% | -0.26% | 0.77% | 0.03% |
The heat map shows the percentage changes of the major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the Euro in the left column and scroll down the horizontal line to the Japanese Yen, the percentage change that appears in the box will represent EUR (base)/JPY (quote).
He US Dollar Index (DXY ) closed in negative territory on Thursday, after data showed the US economy expanded at a softer pace than expected in the first quarter. However, the Gross Domestic Product data showed a significant rise in the GDP price deflator and helped the DXY limit its losses. Early Friday, the DXY is trading in a narrow channel above 105.50 and the 10-year US Treasury yield remains near 4.7% after rising more than 1% on Thursday. Meanwhile, US stock index futures post strong gains in the European morning, reflecting improved risk sentiment.
He EUR/USD continued to rise in the American session on Thursday and recorded its highest daily close in more than two weeks. The pair remains in a consolidation phase below 1.0750 in the European session.
He GBP/USD It extended its weekly bounce to a third consecutive day on Thursday and gained 0.4% on the day. The pair remains stable around 1.2500 to begin the last trading day of the week.
He Gold rose on Thursday but struggled to gain bullish momentum as US yields rose. XAU/USD remains firm early on Friday and is trading in the green above $2,340.
Economic indicators
Expenditure on basic personal consumption – Price index (annual)
Core personal consumption expenditure (PCE), published monthly by the U.S. Bureau of Economic Analysis, measures changes in the prices of goods and services purchased by consumers in the United States. The PCE price index is also the preferred inflation indicator of the Federal Reserve (Fed). The annual reading compares the prices of goods in the reference month with the same month of the previous year. Generally, a high reading is bullish for the US Dollar (USD), while a low reading is bearish.
More information.
Last post: Fri Mar 29, 2024 12:30
Periodicity: Monthly
Current: 2,8
Consensus: 2 ,8%
Former: 2 .8%
Fountain: US Bureau of Economic Analysis
Following the publication of the GDP report, the US Bureau of Economic Analysis publishes data on the Personal Consumption Expenditure Price Index (PCE) along with monthly changes in Personal Expenditure and Personal Income. FOMC policymakers use the annual core PCE price index, which excludes volatile food and energy prices, as the main indicator of inflation. If the data were better than expected, the dollar could outperform its rivals as it would signal a possible shift in direction from the Fed towards hawkish monetary policy, and vice versa.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
