GBP/USD: Pound Resists Dollar Despite A Hawkish US Fed
  • The Japanese Yen (JPY) is rising for a second day
  • JPY looks to Tokyo core CPI data
  • The US Dollar (USD) falls against its major peers
  • The Fed left rates unchanged & US Q4 GDP missed forecasts

The US dollar Japanese yen (USD/JPY) exchange rose is falling on Thursday for a second straight day. The pair fell 0.22% in the previous session, settling on Wednesday at 155.18. At 18:30 UTC, USD/JPY trades 0.55% lower at 154.33 and is in a range of 153.79 to 155.20

The Japanese yen strengthened again on Thursday, this time following the BoJ rate hike last Friday and ahead of Tokyo inflation data later.

Economists expect core Tokyo inflation, considered a lead indicator for the national inflation levels to tick higher to 2.5% annually up from 2.4%. Hotter underlying inflation could fuel expectations of another rate hike, particularly after the BoJ was vague about guidance for further hikes.

Japanese retail sales and industrial output will also be released.

The US Dollar is falling across the board. The US Dollar Index, which measures the greenback against a basket of major currencies, is down 0.09% to 107.92 at the time of writing after two days of gains..

The USD is falling as investors consider the Federal Reserve’s interest rate decision on Wednesday and mixed data today.

As expected, the Federal Reserve left interest rates unchanged at 4.25% to 4.5% after cutting rates by 100 basis points last year. The Fed highlighted the resilient labour market and still elevated inflation as reasons to leave rates on hold. Fed Chair Jerome Powell added that the central bank was not in a rush to cut rates until the data showed that it was necessary.

After the Fed’s slightly hawkish stance, today’s US GDP data was weaker than expected, falling to 2.3% annualized in Q4, down from 3.1% in Q3 and below forecasts of 2.6%. The data supports a less hawkish Fed stance, pulling USD lower.

Meanwhile, US jobless claims were lower than forecast, easing to 207k from 223k the previous week.