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The latest forex coverage from the TrustFinance editorial desk.
Citigroup analysts forecast the Bank of Japan will raise its benchmark rate to 1.25%, but the yen's near-term trajectory will depend critically on internal policy board votes and the Federal Reserve's upcoming interest rate decision.
U.S. Treasury yields remained near multi-year highs as a resilient labor market and oil prices approaching $100 a barrel bolstered expectations for further Federal Reserve monetary tightening. Investors are now focused on upcoming inflation data for clues on the Fed's next move.
The Canadian dollar strengthened against its U.S. counterpart, as a sharp rise in crude oil prices due to Middle East tensions outweighed pressure from weak domestic jobs data and an escalating trade dispute.
A dramatic break of the 155 level in the dollar-yen pair has triggered a surge in bullish options bets, with some funds positioning for the Japanese currency to strengthen beyond 140 by year-end.
The Japanese yen strengthened to a near seven-month peak against a weakening U.S. dollar amid expectations of a Bank of Japan rate hike. Brent crude approached $100 per barrel as escalating Middle East conflicts stoked inflation fears.
Benchmark 10-year U.S. Treasury yields pushed toward multi-year highs and Brent crude surpassed $100 a barrel, fueling inflation concerns and hawkish Fed expectations ahead of key U.S. price data.
Despite the yen's recent surge to multi-month highs, Japanese individual investors have increased their bets against the currency, amassing ¥3.61 trillion in net short positions and setting the stage for a potential short squeeze.
The British pound fell from a multi-week high on Thursday after U.S. producer price inflation came in hotter than expected, strengthening the dollar. The move came as the European Central Bank also raised interest rates.
Sovereign bond yields rose sharply on Thursday after the European Central Bank raised interest rates and a stronger-than-expected U.S. producer price report intensified expectations for further monetary tightening by the Federal Reserve.
