Daily updates on foreign exchange news

USD/JPY eyes 110.00 as USD rebounds ahead of US PMI data

The buying interest in the US dollar keeps USD/JPY higher on Monday in the Asian session. The pair makes a consolidative move in a narrow trading band of 109.65 and 109.85.

At the time of writing, USD/JPY is trading at 109.73, up 0.03% for the day.

The US Dollar Index, which tracks the performance of the greenback against the six major rivals, trades higher as it reclaims the 92.00 mark after dipping toward 9.75.

The greenback held the gains after a top US infectious disease expert Dr. Anthony Fauci said that US would not lock down again to curb COVID-19, as cases were rising due to the rapid spread of the Delta variant.

In the latest development, the US Senate formalized legislation to march ahead with a sweeping $1 trillion spending plan for roads, rail lines, high-speed internet and other infrastructure, with some senators predicting final approval later this week.

The US Core Personal Consumption Expenditure Price Index( PCE) jumped 0.4% in June, easing from a 0.5% rise in May, well below the forecasts of 0.6%.

On the other hand, the Japanese yen failed to capitalize on its safe-haven appeal after reports surfaced that Japan proposed states of emergency through August 31st in three prefectures near Olympics host Tokyo, as coronavirus infections spiked to records.

As for now, investors wait for the Jibun Bank Manufacturing PMI Final data and US ISM Manufacturing PMI data to take fresh trading impetus.

Reference by: