USD/JPY Waits for US PCE Inflation Data Amid BoJ Rate Hike Expectations
The Japanese Yen (JPY) held steady against the US Dollar (USD), hovering around the 159.00 mark on Wednesday, as investors anticipated key macroeconomic releases from the United States.
Most USD crosses are trading within their previous ranges, with the market bracing for the July Personal Consumption Expenditures (PCE) Price Index release, which is expected to echo the soft July CPI and retail sales data, giving the Federal Reserve room to stay on hold, according to Brown Brothers Harriman's Elias Haddad.
The consensus forecast predicts a 0.1% monthly increase in headline PCE prices, rising to 3.6% year-over-year, while core PCE is expected to rise 0.2% month-over-month and remain at 3.3% year-over-year for the second straight month.
In Japan, all eyes are on the advanced Tokyo Consumer Price Index (CPI) release, which will be carefully watched to confirm market expectations of a Bank of Japan (BoJ) rate hike in September, analysts at MUFG noted.