USD/JPY Accelerates Towards 149.00 After Alleged BoJ Intervention
- USD/JPY rallied back above 149.00 following suspicious intervention when USD/JPY dipped to its daily low below 146.00.
- The US economy is decelerating faster than expected, will the Fed pivot?
- Speculation of another Bank of Japan (BoJ) intervention lurks after plunging over 400 pips during the day.
USD/JPY rises as the North American session draws to a close and reclaims the 149.00 figure on strong US Treasury yields alongside overall US Dollar strength across the board amid of a risk impulse. At the time of the strike, USD/JPY is trading at 149.06. up almost 1%.
Risk impulse boosted the US dollar, despite poor economic data
Wall Street ended the day with solid gains, despite worse than expected US economic data. Since Federal Reserve officials entered the blackout period last Saturday, a slice of U.S. data in the filing would shed some light on the U.S. economy.
On Monday, S&P Global revealed that the composite PMI for the country had fallen at a faster pace than expected, coming in at 47.3, below estimates of 49.3, after September’s 49.5. According to Chris Williamson, S&P’s global chief economist, the risks of a contraction in the fourth quarter have increased at a time “when inflationary pressures remain stubbornly high”, via Bloomberg.
Apart from that, speculation of Japanese authorities propelling the Japanese Yen arose as USD/JPY fell to its daily low at 145.61 around 07:45 EST. Nonetheless, the decline was short-lived as USD/JPY rebounded towards 148.00, snaking since then around the 148.00-149.24 area.
The Japanese economic register will contain level 1 data, such as the services PPI, the consumer price index (CPI) for October and employment data, ahead of the Bank of China‘s monetary policy meeting. Japan (BoJ).
On the US front, the calendar will reveal additional Fed regional indices, CB Consumer Confidence, durable good orders, jobless claims and the Fed’s preferred indicator for inflation, the PCE.