- USD / JPY gains momentum and cuts losses on Tuesday.
- Ahead: US inflation data and Beige Book.
USD / JPY is rising on Wednesday, after successfully erasing the losses from the Asian session. After bottoming out at 103.51, the lowest level since Jan 7, the pair began a rally and recently reached 103.99, the new high of the day.
He Bullish momentum came from a general rise in the dollar, erasing losses on all fronts. The DXY is up 0.22% at 90.30, after falling to 89.92. Against currencies linked to commodities and emerging markets, the dollar also erased losses.
The drop in stocks coupled with the rebound in Treasury yields put a brake on the decline in the greenback and is now driving it. In the next few hours the US inflation data for December will be released and later the Fed’s Beige Book. On Thursday in Japan it will be the turn of the November factory orders report.
Attention is being taken by US policy Vice President Pence refused to use a constitutional article to remove power from President Trump, and Democratic lawmakers would vote for impeachment today.