- The dollar marks new lows in the market after US data.
- Annual wholesale inflation falls more than expected in October.
- USDJPY marks new lows in months, then cuts losses.
The USDJPY plummeted after US wholesale inflation data was released., which was lower than expected. The pair went from 139.15 to hit a 2.5-month low of 137.63, before bouncing to 138.50.
The dollar fell on all fronts after learning that the Producer Price Index rose 8% in annual terms in October, less than the 8.3% market consensus and less than the 8.4% in September. At the same time, the Empire Manufacturing Index was released, showing a rebound well above expectations in November.
The Low inflation leads traders to be more confident that the Federal Reserve will soon slow the pace of interest rate hikes. This is reflected in the fall in Treasury yields. The 10-year bond fell to 3.76%, the lowest since October 22
The weak dollar and low yields leave the USDJPY vulnerable to the downside. A return below 138.00 may add to the negative pressures. On the upside, at 140.80 there is significant resistance, although before that level there is 139.50, an intermediate level.
technical levels
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.
