Weaker US inflation data fuels Fed rate cut bets, pressuring the Dollar against the Yen near 162.00.
The US Dollar edged lower against the Japanese Yen, trading near 162.00 in early European trading on Thursday. A triangle pattern has formed, reflecting indecisive price action as markets reassess Federal Reserve policy expectations.
Recent US inflation data, including a surprise contraction in June’s Producer Price Index, reinforced disinflationary trends and reduced odds of an immediate Fed rate cut. The Fed is widely expected to hold rates steady at its July meeting, though softer economic prints have tempered the Dollar’s strength.
Technical indicators show mixed signals, with the Relative Strength Index near 50 and the MACD slightly negative. Support lies at 161.90, with further downside targets at 161.30 if the pattern breaks lower.