Forex Top Team

After yesterday’s turmoil, will the USD/JPY pair remain quiet as we check the U.S. and European economic statistics?

Yesterday saw a tumultuous day for the yen, with USD/JPY surging into the 160s before swiftly falling back, apparently pushed down to the 154s by aggressive selling thought to be intervention. Since then, the market has gradually stabilized, now hovering around the late 156s to 157.

With the U.S. FOMC meeting starting tomorrow and the U.S. employment statistics due on Friday, coupled with the end of the month, today’s yen market, including USD/JPY, is likely to be quiet.

The upcoming international market will release several economic indicators including Canada’s Real GDP (February), U.S. Employment Cost Index (Q1 2024), U.S. Housing Price Index (February), U.S. S&P Case-Shiller Home Prices (20 cities) (February), U.S. Chicago Purchasing Managers’ Index (PMI) (April), and U.S. Conference Board Consumer Confidence Index (April), which are relatively numerous.

From yesterday’s turbulent market, it seems we will return to a market that normally reacts to the strengths and weaknesses of economic statistics.

In terms of scheduled speeches and events, there are no major financial authority speeches planned. In the U.S. stock market, earnings announcements from McDonald’s, 3M, Coca-Cola, AMD, PayPal, Amazon.com, and Starbucks are garnering attention.

Today, with high consumer price indices in Europe, there is considerable buying interest in the euro. I am leaning towards buying the euro.