Ella 
The Japanese yen (JPY) fell for the third straight session on Tuesday. A stronger U.S. dollar (USD) provided support for USD/JPY as investors remained cautious ahead of the Federal Reserve (Fed) decision and the release of U.S. May inflation data on Wednesday.
The yen was in trouble after the release of mixed data on Monday. Japan’s GDP annualized data showed that Japan’s economy shrank less than expected in the first quarter. Meanwhile, GDP contracted in the first quarter (quarter-on-quarter), in line with the preliminary data. In addition, a steady stock market also weakened the yen. Investors are looking forward to the Bank of Japan’s policy decision on Friday.
The U.S. Dollar Index (DXY), which measures the value of the U.S. dollar (USD) against six major currencies, maintained its position due to the reduced probability of two interest rate cuts by the Federal Reserve (Fed) in 2024. The CME FedWatch tool showed that the probability of the Fed cutting interest rates by at least 25 basis points in September fell to nearly 49.0% from 59.5% a week ago.
