USD/JPY moves above 149.50 as Trump speaks
The USD/JPY pair attracted some buyers around 149.75 during the Asian trading hours on Tuesday. The US dollar (USD) strengthened as traders await more cues from US President Donald Trump’s speech. On Wednesday, the US ISM Services Purchasing Managers’ Index (PMI) for February will be in focus.
Meanwhile, the US Dollar Index (DXY), a measure of the USD’s value relative to its most significant trading partner currencies, is currently trading around 105.75, up 0.18% on the day. However, the greenback’s gains may be limited amid concerns over slowing economic growth and the impact of tariffs.
“Fears about weakening US and global economic activity are evident in the market, with cyclicals driving the sell-off,” said Kyle Rodda, senior financial markets analyst at Capital.com.
Aggressive statements from Japanese authorities may provide some support to the Japanese Yen (JPY) and create a headwind for USD/JPY. BOJ Deputy Governor Shinichi Uchida said on Wednesday that the Bank of Japan will continue to raise interest rates if its economic forecasts are met. Uchida added that Japan’s exit from its long-standing ultra-loose monetary policy has only just begun.
The BOJ is widely anticipated to continue raising interest rates this year, supported by improving economic conditions, rising prices and stronger wage growth, which are in line with the central bank’s policy normalization efforts.
Source: FXStreet
