The impact of the Bank of Japan’s monetary policy may have sustained effects as the market digests the outcomes of the FOMC, ECB, and BOJ monetary policies. The US personal consumption expenditure (PCE) deflator for June is expected to show a year-on-year increase of around 3.0%, which is a slowdown from the previous month’s 3.8% rise. If the PCE deflator also falls below expectations, it could lead to speculation of the Federal Reserve halting its rate hikes, potentially resulting in selling pressure on the US dollar.
Additionally, the US personal income and PCE for June will be released, with personal income expected to increase by 0.5% month-on-month, continuing its 17-month consecutive growth trend, and PCE forecasted to rise by 0.4% month-on-month, marking its sixth consecutive monthly increase.
Furthermore, the preliminary German consumer price index for July will also be released, with an expected year-on-year increase of 6.2%, showing a deceleration from the previous month’s 6.4% rise.
After BOJ Governor Kuroda’s press conference, the Japanese yen’s movement has come to a halt. The market will closely observe how the USD performs in the US market following these events. As future US interest rates are data-dependent, further volatility is expected depending on the data outcomes.