European session: Japanese yen rose against the dollar significantly

Data

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The dollar rose slightly against the euro, despite the lack of publication of economic data. Note also that the markets are still in a state of thin trading before the release of U.S. data 13:55 GMT. This report may show that the final index of consumer sentiment from the Reuters / Michigan fell slightly in July - to the level of 84.0, compared with the June reading at the level of 84.1 points.

In addition, we add that market expectations are that the leadership of the Federal Reserve intends to convince the markets and investors that monetary policy authorities will continue to remain accommodative and supportive. The next meeting of the Federal Open Market Committee will be held on July 30-31. According to preliminary surveys, about 54% of economists believe that Bernanke and his colleagues decided to reduce the amount of monthly purchases of bonds to $ 65 billion from the current $ 85 billion, however, yesterday the Wall Street Journal reported that the authorities may still leave the bond purchase program unchanged and may indicate that the monetary policy will remain soft for a longer period of time.

The yen higher against the U.S. dollar, which has been associated with the release of the report on Japan. As shown by recent data that has been provided by the Ministry of Internal Affairs and Communications, the core consumer price index in Japan in June rose by 0.4% compared with the same period last year, marking the first increase in more than a year. It is worth noting that according to the average forecasts of experts, the growth of this index was up 0.3%, while in May, the index remained unchanged. This growth has been favorable news for the Bank of Japan, which has launched a two-year program to combat deflation, aimed at achieving inflation of 2%. According to preliminary estimates, in the Tokyo region inflation in July was 0.3%, compared with a forecast of 0.2%.

Core CPI, which does not include the more volatile food prices, rose 0.3%.

However, it should be noted that inflation excluding the prices of petroleum products and food, which, for example, in the United States is used as the main indicator fell by 0.2%.

Published data highlight the successes of the policy pursued by Prime Minister Shinzo Abe. Recall that in April 2013, he launched an ambitious program of quantitative easing, and the main objective is to achieve a 2% inflation rate and the revival of economic growth.

EUR / USD: during the European session, the pair fell to $ 1.3260

GBP / USD: during the European session, the pair rose to $ 1.5416

USD / JPY: during the European session, the pair fell to Y98.46

At 13:55 GMT the United States will come indicator of consumer confidence from the University of Michigan in July.