US Dollar Surges Against Yen Amid Strong US Data
The US dollar (USD) has strengthened against the Japanese yen (JPY) this week, pushing against the key 200-day Simple Moving Average (SMA), currently at 158.47.
The move comes after strong US business activity data and a poor bond auction that sent US Treasury yields soaring.
On Wednesday, preliminary US S&P Global Purchasing Managers Index (PMI) figures revealed that business activity accelerated to its fastest pace in five years in September.
US firms also reported a strong increase in jobs, forcing them to offer higher wages amidst rising input costs due to high energy prices.
This data has contributed to hopes that the Federal Reserve (Fed) will have to hike interest rates further in the coming months, a view backed by Federal Reserve Governor Michael Barr who stated that price stability is 'crucial' for supporting durable growth and maximum employment.