In the market at the beginning of the week, USD-buying is generally dominant. The USD/yen has crossed the mid-140 yen level. However, there is also a somewhat cautious stance on buying from here. Fed President Bullard’s hawkish remarks last Thursday took a step back from widespread market expectations of a correction in the rate hike stance. The pair is expected to make corrections against USD selling. However, due to the weakness of the US CPI two weeks ago and the US PPI last week, US bond yields are trending downward. In response to President Bullard’s remarks, there has been no change in the FOMC’s December interest rate hike of 0.5%.
With the terminal rate also split between 4.75-5.00% and 5.00-5.25%, is it difficult to buy USDs all at once?
However, the EUR/USD pair has become quite heavy before 1.05, and the USD selling after last week’s PPI has been quickly reversed, and the USD/yen pair is also on the downside.
From the 140 yen range to the low 141 yen range, we expect to explore the next big trend, centering on a slightly higher range.
Will the EUR/USD and pound/USD exchange rates keep an eye on Wednesday’s Purchasing Managers’ Index? As there is concern about the deterioration of business sentiment, it is also difficult to buy.
First of all, we are waiting to see how long the USD appreciation will last.