The USD/JPY pair is nearing 160 yen, with intervention concerns keeping traders cautious. Yesterday, the pair dropped sharply from 159.60 to around 158.80 before quickly rebounding to 159.50. In New York, the pair remained stable but did not attempt to break 160.
Today’s market will watch if the USD/JPY can climb above 160 and how the market reacts to potential intervention rumors. Kanda’s reappointment as the finance official is also a key focus. End-of-month, quarter, and half-year flows could further impact trading.
Upcoming economic data include Hong Kong’s trade balance, Canada’s CPI, U.S. housing prices, the Conference Board’s Consumer Confidence Index, and Richmond Fed Manufacturing Index. The U.S. Consumer Confidence Index is expected to drop from 102.0 in May to 100.0 in June, potentially leading to USD selling if economic cooling is evident.
Key speeches from Greek, German, French, and U.S. central bankers are scheduled. The U.S. Treasury will auction 2-year bonds worth $69 billion.
Watch for movements following Canada’s CPI and the U.S. Consumer Confidence Index.
