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Forex Today: USD/JPY and crude oil hit long-term high prices

Forex Today: USD/JPY and crude oil hit long-term high prices

Markets saw crude oil and the USD/JPY currency pair rise to new multi-month highs on OPEC cuts and a weakening yen, although Japan's Kanda managed to play down the move for now.

➡️ WTI Crude Oil rose strongly yesterday to reach a new multi-month high price, as Saudi Arabia and Russia confirm they will continue supply constraints until the end of 2023.

➡️ In the Forex market, the USD/JPY currency pair advanced strongly yesterday to a new 10-month high above ¥148.75 before selling off slightly after Japan's top currency diplomat Kanda said currency movements were being monitored urgently while all options remained on the table – the threat of central bank intervention due to the continued weakening of the Japanese yen. However, despite the threat, the price does not remain far from its maximumor, and trend traders will look to go long short-term dips or breakouts.

➡️ The Bank of Canada policy meeting later today should see the Bank keep its overnight rate at 5.00%.

➡️ There will be a release of US ISM Services PMI data later today. A value significantly above 52.5 will likely produce gains from the US dollar.

➡️ Cocoa futures traded at a new multi-year high price yesterday, but failed to reach a record high by the end of the day.

➡️ Federal Reserve Governor Waller made a docile remark implying that the Fed can afford not to raise rates as inflation appears to show continued easing.

 

Credit by DailyForex.com

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