Impact of US Consumer Price Index Release on USD/JPY Movement

Thursday, 11 July 2024, 13:31

The USD/JPY pair experienced a significant drop of over 2.0% into the 157.90s following the recent US Consumer Price Index (CPI) report for June, indicating a slowdown in inflation in the US economy. This sharp decline underscores the sensitivity of currency markets to economic data releases, particularly those related to inflation.
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Impact of US Consumer Price Index Release on USD/JPY Movement

USD/JPY Dives After US CPI Data

The USD/JPY pair saw a sharp decline of over 2.0%, falling into the 157.90s, after the release of the US Consumer Price Index (CPI) for June.

Impact of Inflation Data

The drop in USD/JPY highlights the market's reaction to the cooling down of inflationary pressures in the US economy.

  • Market Sensitivity: Currency markets are highly sensitive to economic indicators, with inflation data playing a crucial role in shaping market sentiment.
  1. Significance of Economic Reports: Releases like the US CPI data can trigger significant movements in currency pairs, reflecting the impact of fundamental factors on exchange rates.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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