FRB Chair Powell will give a semi-annual parliamentary testimony at the Senate Banking Committee today. It is expected that it will emphasize its aggressive tightening stance against rising prices, which is likely to lead to a move to buy dollars. Since the dollar-yen pair rose sharply yesterday, we are cautious about buying from here, but we are conscious of buying dollars in euro dollars, pound dollars, etc. The dollar-yen pair also maintained the 136-yen level during the adjustment phase of the Tokyo market today, which gives a firm sense of the downside, making it easy to invite short-term sources to buy. As the dollar strengthens, it is quite possible that the dollar will move beyond the highs from yesterday to this morning.
There is a strong view that Eurodollar is aiming for parity in the medium to long term, so there is a tendency for sales to come out on the return. Yesterday, the buying of the Euroyen also supported the dollar, but due to the decline in US stocks, it is difficult to sell the yen, and the euroyen is expected to have a heavy upside as the cross yen is selling in general. Is it a selling trend for the euro in general?
It is expected that the British price statistics will be slightly stronger at 15:00 when the pound was noticed. The impact is limited, as the year-on-year change in the consumer price index, which is the most noticeable target for inflation, is in line with market expectations. Expectations for a significant rate hike in the UK are increasing, but expectations have not changed significantly with this indicator, and there are moves to make adjustments.
USDJPY continues to move steadily. It is assumed that the balance between selling Japanese yen and buying dollars will continue.