USD/JPY remains strong near fresh YTD highs on steady USD
- USD/JPY continues to march higher with strong gains.
- Strong US dollar contributes to the upside momentum in the pair.
- Yen remains submissive on mixed economic data and a softer BOJ tone.
USD/JPY extends the previous session’s gains in the initial Asian trading hours. The pair gathers momentum and refreshes the YTD highs near the 111.11 mark.
At the time of writing, USD/JPY is trading at 110.97, up 0.02% for the day.
The US Dollar Index (DXY), which measures the performance of the greenback against its six major currencies, trades at 91.80. The US 10-year benchmark yield hovers near 1.48% with 0.12% gains.
The gains in the greenback traced back to Fed official’s debate over rising inflation pressure after Fed Chair Jerome Powell downplayed the rising pricing pressure once again.
The IHS Markit US Manufacturing PMI rose 62.6 in June from 62.1 in May, much above the market forecast of 61.5. The readings revealed record growth in factory activity as COVID-19 restrictions eased. The IHS Markit US Services PMI fell to 64.8 in June, much lower than the market consensus at 70.0.
The IHS Markit US Composite PMI dropped to 63.9 in June, from a record high of 68.7 in May. The mixed data held the gains for the greenback.
On the other hand, the Japanese yen lacks behind the investor’s spotlight on the mixed economic state. The Bank of Japan (BOJ) board members felt massive stimulus would help the economy to recover, with domestic consumption potentially providing a tailwind as accumulated savings get spent.
Market participants are now bracing up for the slew of economic data: US Durable Goods Orders, GDP Price Index, Corporate Profits QoQ, and GDP Growth Rate QoQ. The Weekly Initial Jobless Claims and Goods Trade Balance Adv for May.
USD/JPY additional levels