- USD / JPY fell into negative territory after updating monthly highs.
- The 10-year US Treasury yield stabilized in reaction to the US CPI data.
- The US dollar index fluctuates below 93.00 in the American session.
The pair USD/JPY it rose to its strongest level in a month at 110.81 on Wednesday, but reversed its course in the US session. After hitting a fresh daily low of 110.40, the pair rebounded modestly and was last seen posting small daily losses at 110.50.
Focus shifts to 10-year US Treasury auction
Earlier in the session, data released by the US Bureau of Labor Statistics revealed that core inflation, as measured by the Consumer Price Index (CPI), fell to 4.3% in July from 4.6% in June. . Although this reading coincided with market expectations, it did put the dollar under downward pressure. At the moment, the US Dollar Index is down 0.1% on the day at 92.9.
Meanwhile, the benchmark 10-year US Treasury yield, which rose more than 1% during European trading hours, stabilized on the day at 1,354% and made it difficult for USD / JPY to rally. keep in positive territory.
However, with the major Wall Street indices starting the day higher and the S&P 500 hitting a new record high, improving market sentiment does not allow the JPY to strengthen and help the USD / JPY limit its losses from the higher. moment.
Later in the day, market participants will closely follow the 10-year US Treasury auction, which will take place at 17:00 GMT.
Technical levels
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