- The producer Price Index in the United States decelerates, flashing the impact of the Federal Reserve’s policy.
- After two US inflation reports, the US Dollar weakened on hopes that the Fed will pause rate hikes.
- Japan’s GDP contracted, justifying the Bank of Japan’s loose policy.
- Russian missiles hit Poland, though pending confirmation remained.
The USDJPY struggles to gain traction above the 100-day Exponential Moving Average (EMA) at 140.82 and drops following the release of a soft US inflation report, strengthening the case for the Federal Reserve and moderating the pace of rate hikes. Also, geopolitical tensions arose as reports emerged that two Russian missiles hit Poland. The USDJPY is trading at 139.05, below its opening price by 0.58%.
Sentiment remains fragile following the Poland events. Reports emerged that Ukrainian forces intercepted a Russian rocket, which dived into Poland, causing the tragedy. Of note, Polish authorities have not expressed an official version of what happened. At the time of typing, the White House said it couldn’t confirm the reports coming out from Poland.
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