Market Insights Podcast – JPY verbal intervention intensified with US PCE inflation & French election looms

OANDA Senior Market Analyst Kelvin Wong joins Jonny Hart to discuss this week’s key economic data and events. We kicked off the week with the another weak JPY backdrop where it continued to seek a retest on its 34-year low against the US dollar at the 160.00 per USD handle. This recent bout of JPY weakness has prompted Japan top currency official, MoF Vice Finance Minister Kanda to issue a firmly worded verbal intervention in today’s early Asian session that stated Japan could intervene in the FX market, 24 hours a day if needed in the event of excessive moves based on speculations.

On the top of FX intervention, the primary focus this week will be the release of the US core PCE inflation data for May that could shape the future expectations of US Fed funds rate where the short-term  interest rate futures market has priced in the first cut to come in the September’s FOMC meeting. Lastly, it will be geopolitical risk out from Eurozone as France goes to the polls this Sunday, 30 June for the first round of the French legislative elections.

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