Dollar Up Against the Yen and Other Currencies on Strong U.S. Economy

Key Takeaways

Upbeat U.S. economic data drives the dollar higher against other major currencies
Inflation concerns ease as U.S. business activity surges in June
Matt Weller, head of market research at StoneX, predicts a focus on the yen for FX traders in the next week

Reuters reported that the dollar hit a new eight-week high against the yen Friday and edged higher against other major currencies, supported by the strength of the U.S. economy and the Fed's sluggishness on interest rate cuts.

Matt Weller, Head of Market Research at Forex.com was quoted in the report that he expects the Japanese yen will have the full attention of FX traders in the coming week. Weller noted Japan was recently added to a list of countries the U.S. Treasury monitors for suspicion of being a currency manipulator. He called this "a diplomatic warning against additional intervention." China is also on the list.

Meanwhile, June saw U.S. business activity rise to a 26-month high amid a rebound in employment and subsiding price pressures, indicating that inflation easing could continue.

The dollar index was up 0.2% at 105.81 in New York afternoon trade Thursday. Some experts see continued strength in the dollar, with political uncertainty in Europe possibly sapping business and hurting consumer confidence.

The Bank of Japan's decision last week to hold off on lowering bond-buying stimulus has increased pressure on the yen.

At the finance ministry's request, the Bank of Japan reportedly spent nearly 9.8 trillion yen to revive the currency from a 34-year slump recently. Meanwhile, the dollar held a five-week high against sterling, which remains flat at $1.2649, around its lowest since mid-May.

The euro was also flat at $1.0697 after a series of preliminary June surveys showed service-sector activity in France contracted this month, while activity across the German economy slowed.

Make Market Insights Your Competitive Advantage

Access live prices, supply and demand data and actionable market commentary across commodities, equities, currencies and more. Sign up for StoneX Market Intelligence today and receive a free 14-day trial.

Access Now

To read the original article, click here.

This material should be construed as market commentary and represents the opinions and viewpoints of the author, and does not reflect tailored advice associated with any specific account of the FCM Division of StoneX Financial Inc. ("SFI") (NFA ID: 0476094) or StoneX Markets LLC ("SXM") (NFA ID: 0449652). The information herein is not advice nor a recommendation to trade nor an offer to buy or sell any financial product or service. Additionally, this material should not be construed as research material. The trading of derivatives such as futures, options, and over-the-counter (OTC) products or “swaps” may not be suitable for all investors. Derivatives trading involves substantial risk of loss, and you should fully understand the risks prior to trading. Past results are not necessarily indicative of future results.

All references to and discussion of OTC products or swaps are made solely on behalf of SXM. All references to futures and options on futures trading are made solely on behalf of SFI. SXM products are intended to be traded only by individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM.

SFI and SXM are not responsible for any redistribution of this material by third parties, or any trading decisions taken by persons not intended to view this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Contact designated personnel from SFI or SXM for specific trading advice to meet your trading preferences.

See why StoneX is a partner of choice

Have questions about our products or services? We're ready to help.

Start a conversation

StoneX: We open markets

Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.

Globality

With access to 40+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.
Transparency

As a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve; our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.
Expertise

From our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.

Tell us about yourself. Are you a:

First name

Last name

Company

Country

Province/Region

By submitting this form, you are sending StoneX Group Inc. and its subsidiaries your personal information to be used for marketing purposes. View our Privacy notice to learn more.

First name

Last name

Company

Account number

Account holder name (if different from above)

By submitting this form, you are sending StoneX Group Inc. and its subsidiaries your personal information to be used for marketing purposes. View our Privacy notice to learn more.

The subsidiaries of StoneX Group Inc. provide financial products and services, including, but not limited to, physical commodities, securities, clearing, global payments, risk management, asset management, foreign exchange, and exchange-traded and over-the-counter derivatives. These financial products and services are offered in accordance with the applicable laws in the jurisdictions in which they are provided and are subject to specific terms, conditions, and restrictions contained in the terms of business applicable to each such offering. Not all products and services are available in all countries. The products and services offered by the StoneX Group of companies involve risk of loss and may not be suitable for all investors. Full Disclaimer.

This website is not intended for residents of any particular country, and the information herein is not advice nor a recommendation to trade nor does it constitute an offer or solicitation to buy or sell any financial product or service, by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Please refer to the Regulatory Disclosure section for entity-specific disclosures.

No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc. The information herein is provided for informational purposes only. This information is provided on an ‘as-is’ basis and may contain statements and opinions of the StoneX Group of companies as well as excerpts and/or information from public sources and third parties and no warranty, whether express or implied, is given as to its completeness or accuracy. Each company within the StoneX Group of companies (on its own behalf and on behalf of its directors, employees and agents) disclaims any and all liability as well as any third-party claim that may arise from the accuracy and/or completeness of the information detailed herein, as well as the use of or reliance on this information by the recipient, any member of its group or any third party.