The Japanese yen experienced a significant downturn, plummeting beyond the 155 per dollar mark to levels unseen since 1990. This sharp depreciation continued after breaching the crucial threshold on Wednesday, marking over three decades of lows and raising the specter of potential intervention ahead of the Bank of Japan’s policy decision slated for Friday.
Market observers are closely monitoring upcoming US economic growth data and the Federal Reserve’s preferred inflation gauge, scheduled for release this week. These indicators will play a pivotal role in shaping traders’ policy expectations moving forward. Over recent weeks, there has been a gradual reduction in the number of anticipated rate cuts from the Fed, reflecting evolving market sentiments.
Economists surveyed anticipate that GDP figures for the first quarter are likely to indicate a cooling trend, with growth hovering around 2.5%. Despite this moderation, the data still hints at persistent inflationary pressures, underscoring the importance of these releases in informing market outlooks and potential central bank actions.