The dollar-yen pair has been moving calmly after rising from the 136.70 yen level to the 137.20 yen level due to yen selling that favored the rise in stock prices in the morning. The market is paying close attention to the June US Consumer Price Index (CPI), which will be released at 21:30. Last time, it exceeded the market forecast and recorded a year-on-year increase of 8.6%, which is the highest level in about 40 years, exceeding the latest high level in March. This has led to expectations of a 0.75% rate hike at the FOMC. This time, it is expected to grow further to + 8.8%. The US gasoline price (national average) in June has risen by more than 10% since May due to the soaring crude oil price, which is expected to boost the overall CPI. A spokesman for the president said that the CPI will be at a high level this time, and even if it has been factored in to some extent, it seems that it will rise more than the market expectation, so he bought the dollar. On the other hand, if the market forecast is not reached, it is likely to sell in dollars because expectations are far ahead.
Is there a movement for Eurodollar to try again the parity that was once added yesterday? So far, there has been no momentum to sell around parity, such as the weight of the upside and the slow response to dollar buying in the dollar yen.
The Bank of Canada’s Monetary Policy Board, announced at 23:00, is expected to raise interest rates by 0.75%. In the interest rate market, etc., 0.75% is being factored in, but due to the weakness of the latest Canadian employment statistics, the move is expected to raise interest rates by 0.5% at a reasonable rate of experts. Because of the different views, it is a cause of turmoil in the Canadian dollar.
It is expected that both USD and CAD will make a big move today. First of all, I would like to keep up with price movements after the announcement of the US Consumer Price Index.
