Japanese Yen Under Pressure as Traders Await US CPI Report
The FX option expiries for August 11th are relatively quiet, with no major events to take note of. The market is currently in a holding pattern as traders wait for the US Consumer Price Index (CPI) report, which is set to be released tomorrow.
As a result, currency traders may not see significant activity in European morning trade today. However, all eyes will remain on the Japanese yen, which has been falling back this week and erasing some of the gains made at the end of July following an intervention move.
The dollar remains supported due to the weak US jobs report from last Friday, but USD/JPY is expected to be cautious as it approaches the 160 mark. This could potentially trigger another round of joint intervention or Tokyo taking action on its own to try and stabilize their currency.