- The USD / JPY regained its traction at the beginning of the American session.
- The US dollar index rose to fresh multi-month highs above 92.00.
- The Fed’s Bullard said inflation is stronger than expected.
After falling below 110.00 earlier in the day, the pair USD/JPY regained its traction and was last seen climbing 0.1% on the day to 110.31.
DXY rises to its highest level since April 13
Despite the strength of the USD, falling US Treasury yields forced the USD / JPY to turn south on Thursday after Wednesday’s strong rally. Nonetheless, as the benchmark 10-year US Treasury yield held steady on the day, the USD valuation became the main driver of USD / JPY moves ahead of the weekend. Despite Thursday’s correction, USD / JPY is looking to post weekly gains for the second week in a row.
While speaking to CNBC on Friday, St. Louis Fed Chairman James Bullard noted that FOMC Chairman Jerome Powell officially opened the discussion on fine-tuning at this week’s meeting and acknowledged that the meeting June presented an “aggressive lean”.
Following these comments, the US Dollar Index (DXY) rose to its highest level in more than two months at 92.21. At time of writing, the DXY was up 0.3% on the day at 92.17.
Meanwhile, the major Wall Street indices remain on track to break deep into negative territory, suggesting that the risk-averse market environment is likely to help the USD continue to outperform its rivals in the US session.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
