The USD surged against the Japanese Yen on Monday, breaking through the 148 level as the greenback’s turnaround gathered pace. This sharp contrast to the USD’s performance a month ago, when sellers pushed the currency into oversold territory, reflects a shift in market sentiment and economic developments. Support for the USD emerged from the monthly chart last month, leading to a gradual buildup characterized by a series of higher-highs and higher-lows.
The momentum accelerated following last week’s Federal Open Market Committee (FOMC) meeting, at which point the price had only retraced 23.6%. The U.S. government posted a $258 billion budget surplus for April, a 23% increase from the previous year, attributed to strong tax receipts at the end of the tax season. Federal Reserve officials, such as Goolsbee, have warned that tariffs will contribute a stagflationary impulse to the economy, emphasizing the need for careful and deliberate policy decisions.
Usd breaks 148 yen level
JPMorgan has revised its economic growth forecasts for China upwards, citing a positive deal with the United States aimed at reducing tariffs. This development has influenced trader behavior, leading to reduced bets on Federal Reserve interest-rate cuts this year, with expectations now set at just two reductions for 2025.
The euro has fallen below 1.11, its lowest point since early April, extending a decline that began from its mid-April high near 1.16. This is partly due to the strengthening U.S. dollar and Federal Reserve policies. Traders and economists are closely monitoring the upcoming release of April’s Consumer Price Index (CPI), which is expected to illustrate the inflationary impacts of tariffs imposed by President Trump.
The report is set to be released at 8:30 a.m. ET. The USD’s considerable strength is a development that is being closely watched by market participants as they assess the implications for the global economy and financial markets.