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USD/JPY rebounded after falling on Thursday, as low as 150.02, before bouncing back to the 150.60 area following mixed but generally positive US PMIs. Following this week’s major data releases, USD/JPY traders will be focused on a dense set of economic data next week.
Forex Market Today: Markets continue to focus on interest rate cut bets
U.S. purchasing managers’ indexes were mixed on Thursday, with the S&P Global Services PMI falling to 51.3 in February from 52.5, versus expectations of 52.0. The manufacturing purchasing managers’ index unexpectedly rose to 51.5, while it was expected to drop to 50.5 from 50.7 in January. The rebound in the manufacturing purchasing managers’ index suppressed the decline in the composite purchasing managers’ index. The monthly composite purchasing managers’ index in February was 51.4. The previous value was 52.0.
More information U.S. S&P Global Manufacturing PMI rises to 51.5
Japan is closed for the day to celebrate the birthday of the Japanese emperor. The USD/JPY market is back in full swing before the weekend break, with the focus on Friday’s Federal Reserve (FED) monetary policy report.
Japan’s national consumer price index (CPI) will be released early next Tuesday, and US gross domestic product (GDP) data will be released on Wednesday. Japan’s national core consumer price index, which excludes fresh food, is expected to fall further to 1.8% in the year to January, compared with the previous reading of 2.3%.
In the United States, annualized GDP in the fourth quarter of 2023 is expected to hold steady at 3.3%.
Next Thursday, ahead of the release of U.S. personal consumption expenditures (PCE) price index data, Japanese retail sales will be released that morning. Japan’s retail sales are expected to rebound to an annual rate of 2.3% from January’s 2.1%, while the U.S. core PCE price index is expected to rise to a monthly rate of 0.4% from the previous reading of 0.2%.
