DailyBubble News
DailyBubble News

USD/JPY gains following dismal US consumer report

The USD/JPY rose after the release of worse-than-expected US consumer sentiment data, with Americans showing less optimism about the economy. The University of Michigan survey revealed a decline in the Consumer Sentiment Index from 77.2 to 67.4 in May. This drop, according to Joanne Hsu, is significant and reflects concerns about inflation, unemployment, and interest rates among Americans.

Inflation expectations for the short term rose to 3.5%, while the ten-year outlook increased to 3.1%. This led to a rise in US Treasury yields and the US Dollar Index, as recession fears resurfaced due to potential weakening consumer spending.

Looking ahead, the focus will be on upcoming US inflation data, retail sales, building permits, and Federal Reserve speeches. From a technical perspective, the USD/JPY rally is expected to continue with buyers in control, as indicated by the Relative Strength Index (RSI) and prices above the Ichimoku Cloud. Bulls may target 156.00, while a drop below key support levels could lead to a test of lower levels.

Overall, the USD/JPY’s movements are influenced by economic data and market sentiment, with investors closely watching for any signs of future trends.

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