The yen regained ground after a monetary policymaker hinted at the need to abandon ultra-easy policies.
He dollar is heading to score monthly earnings this Thursdaywhile they knew the European inflation data and awaiting US figures, meanwhile, the yen regained ground after a monetary policy official hinted at the need to abandon ultra-expansive policies.
The dollar fell 0.66% against the Japanese currency, to 149.75 yen, after Hajime Takata, a member of the board of the Bank of Japan, said that there was finally prospect of reaching the bank’s 2% inflation target, paving the way to move beyond negative rates and yield caps.
If maintained, it would be the biggest daily fall of the dollar against the yen in 2024, although this is largely a reflection of the few days of strength the yen has had this year: the dollar is still up 1.8% against the Japanese currency in February.
The euro rose 0.1% to $1.0847 and held steady practically flat in the monthas does the pound at $1.2670.
The common currency appreciated slightly after provisional German provincial inflation data showed the month-on-month CPI was higher in February than in January in several of the first provinces to report figures.
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Markets: the key data to come
More will be posted throughout the day. provincial and inflation data in Germany. French consumer prices rose 3.1% year-on-year in February, slightly above expectations, due to rising energy prices, while prices in Spain rose 2.9%, in line with expectations , according to data also published on Thursday.
The underlying price index for personal consumption expenditures (PCE), the US Federal Reserve’s favorite inflation measure and therefore the most important for global markets, will be published on Thursday at 1330 GMT.
Forecasts point to a monthly increase of 0.4%.
Not a long time ago, Investors had expected an increase of just 0.2%, but high consumer and producer price readings suggest the risk is that the result could reach 0.5%.
The markets value at 20% the possibility that the Federal Reserve cuts rates in May, and they have delayed the probable date of a cut until June. Futures imply just over three 25 basis point cuts this year, up from five at the start of the month.
Source: Ambito
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