- The Japanese Yen (JPY) falls as the market mood improves
- Japan’s 20-year bond auction demand is the weakest since 2018
- The US Dollar (USD) is rising against its major peers
- US consumer confidence rises after 5 months of declines
The US dollar against the Japanese yen (USD/JPY) exchange rate is rising after losses yesterday. The pair fell -0.14% in the previous session, settling on Monday at 142.63. At 15:30 UTC, USD/JPY trades 1.06% higher at 144.37 and trades in a range of 142.12 to 144.44.
The Japanese yen is falling amid an improved market mood and after Japanese corporate service data revealed slowing growth in April but rising inflation.
Market mood has improved after Trump postponed the 50% trade tariff on the EU until July 9th, as relations between the two regions improve and trade talks start in earnest. This has kept both the US and the EU away from the edge of a more serious trade war.
The Japanese yen is a safe haven that often performs well in periods of higher geopolitical tensions. As tensions ease, the yen can often fall.
Meanwhile, overnight data showed that a leading indicator of Japan’s corporate service inflation was at 3.1% in April, keeping expectations of another interest rate hike by the Bank of Japan alive, which could limit losses in the yen.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback against a basket of major currencies, is -0.52% lower at 99.59 at the time of writing, marking a third day of losses.
The US dollar is rising against its major peers on Tuesday after the long holiday weekend. This week, the focus is on U.S. consumer confidence data, the minutes from the Fed meeting, and core PCE, the Federal Reserve’s preferred gauge for inflation.
US consumer confidence unexpectedly improved in May after five straight months of declines, which had sent sentiment to its lowest level since the pandemic. The Conference Board consumer confidence index rose 12.3 to 98, up from 85.7, its lowest level since 2020.
