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The Japanese Yen hovers around its 38-year low of 161.28. The JPY may limit its downside due to possible intervention by Japanese authorities. The US Dollar struggles as recent inflation data raise expectations of Fed rate cuts in 2024. The Japanese Yen (JPY) remains tepid on Monday near its lowest level of 161.28 since 1986. However, its downside seems limited as an upbeat Japan’s business confidence data lifted market sentiment. Additionally, the expected speculations about an imminent intervention by Japanese authorities support the JPY. Japan’s Tankan Large Manufacturing Index rose to 13 in the second quarter from the previous reading of 11. The index hit the highest level in two years amid an improving economic outlook. Meanwhile, Japan’s Jibun Bank Manufacturing PMI for June was revised slightly lower to 50 from a preliminary reading of 50.1 but remained expansionary for the second straight month. The US Dollar (USD) depreciates as recent inflation data raises expectations of the US Federal Reserve’s (Fed) deducting interest rates in 2024. The CME FedWatch Tool indicates that the likelihood of a Fed rate cut in December by 25 basis points has increased to nearly 32.0%, up from 28.7% a week earlier. Daily Digest Market Movers: Japanese Yen declines despite upbeat business confidence data Japan’s Tankan Large Manufacturing Outlook rose to 14 in the second quarter from the previous reading of 10. Meanwhile, Large All Industry Capex increased to 11.1% in the second quarter from the previous 4.0% reading. On Friday, the Federal Reserve Bank of San Francisco President Mary Daly said that monetary policy is working. Still, it’s too early to tell when it will be appropriate to cut the interest rate. Daly stated, “If inflation stays sticky or comes down slowly, rates would need to be higher for longer,” per Reuters. On Friday, the…

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Filed under: News - @ July 1, 2024 4:24 am