The USD/JPY it just hit a new cycle high of 114.70 as the US dollar gains more ground, trading offered at 95.925 against a basket of rival currencies as measured by the DXY index.
USD/JPY H1 Chart
The US dollar has been better positioned since last week’s inflation data surprised to the upside and showed consumer prices rose to their highest rate since 1990. Investors now expect the Federal Reserve to reduce its QE program to a faster pace. More aggressively, some observers are even expecting the Fed to raise interest rates earlier than anticipated in the markets.
DXY H1 Chart
On Tuesday, US data showed that US consumers looked past rising prices and boosted retail sales more than expected last month. US retail sales increased 1.7% in October, beating consensus expectations for a 1.4% increase. Additionally, US industrial production increased 1.6% in October, which was considerably higher than expected. In addition, the president of the Federal Reserve Bank of St. Louis, James Bullard, said that the central bank of the United States should accelerate the reduction of monetary stimulus in response to an increase in US inflation.
.
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.
