Created
: 2025.02.12
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
USD/JPY rises to fresh weekly high above 154.00 after US inflation data
World FX news
Breaking news
USD/JPY rises to fresh weekly high above 154.00 after US inflation data
New
2025.02.12 22:55
2025.02.12 22:55
2025.02.12 22:55
- USD/JPY extends its daily uptrend, trades above 154.00 in the American session.
- Annual CPI inflation in the US rose to 3% in January.
- The benchmark 10-year US Treasury bond yield is up about 2% on the day.
USD/JPY gathered bullish momentum in the early American session on Wednesday and reached a fresh weekly high near 154.50. At the time of press, the pair was up 1.2% on the day at 154.32.
Hot US inflation data boosts USD
The US Dollar (USD) outperforms its rivals and helps USD/JPY push higher following the January inflation data.
The US Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose 3% on a yearly basis in January, above the market expectation and December's increase of 2.9%. Additionally, the core CPI, which excludes volatile food and energy prices, increased 0.4% on a monthly basis.
Reflecting the broad-based USD strength, the USD Index is up 0.5% on the day near 108.50. Additionally, the benchmark 10-year US Treasury bond yield rises nearly 2% on the day above 4.6%, further supporting the USD.
Later in the day, the US Treasury will hold a 10-year note auction. Meanwhile, market participants will keep a close eye on headlines surrounding US President Donald Trump tariff policy.
Inflation FAQs
Inflation measures the rise in the price of a representative basket of goods and services. Headline inflation is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core inflation excludes more volatile elements such as food and fuel which can fluctuate because of geopolitical and seasonal factors. Core inflation is the figure economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level, usually around 2%.
The Consumer Price Index (CPI) measures the change in prices of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core CPI is the figure targeted by central banks as it excludes volatile food and fuel inputs. When Core CPI rises above 2% it usually results in higher interest rates and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually results in a stronger currency. The opposite is true when inflation falls.
Although it may seem counter-intuitive, high inflation in a country pushes up the value of its currency and vice versa for lower inflation. This is because the central bank will normally raise interest rates to combat the higher inflation, which attract more global capital inflows from investors looking for a lucrative place to park their money.
Formerly, Gold was the asset investors turned to in times of high inflation because it preserved its value, and whilst investors will often still buy Gold for its safe-haven properties in times of extreme market turmoil, this is not the case most of the time. This is because when inflation is high, central banks will put up interest rates to combat it. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold vis-a-vis an interest-bearing asset or placing the money in a cash deposit account. On the flipside, lower inflation tends to be positive for Gold as it brings interest rates down, making the bright metal a more viable investment alternative.
Last updated
: 2025.02.12
Related articles
Mexican Peso defies US inflation shock, extends gains
22 minutes agoEUR/USD reverses early declines, climbs back over 1.04
29 minutes agoFed's Bostic: labor is good, but inflation still needs monitoring
44 minutes agoDow Jones Industrial Average tumbles as US inflation kicks higher
2025.02.13 02:06BoE's Greene: hesitant to say a trade war is helpful for inflation
2025.02.13 01:21EUR/USD Price Analysis: Bulls push higher but face key resistance
2025.02.13 00:56
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Mexican Peso defies US inflation shock, extends gains
The Mexican Peso (MXN) extended its gains against the US Dollar (USD) for the second consecutive day, unfazed by the jump in inflation in the United States (US), preventing the Federal Reserve (Fed) from easing policy.
New
2025.02.13 02:55EUR/USD reverses early declines, climbs back over 1.04
EUR/USD clawed back chart paper on Wednesday, rebounding from early losses to reclaim the 1.0400 handle as markets shake off a fresh batch of US inflation figures that broadly accelerated in January.
New
2025.02.13 02:48Fed's Bostic: labor is good, but inflation still needs monitoring
Federal Reserve (Fed) Bank of Atlanta President added his own soundbites to the noise machine of Fed headlines on Wednesday, noting that despite still-strong labor figures, US inflation continues to remain a sticking point, especially after US Consumer Price Index (CPI) inflation figures ticked higher in January.
New
2025.02.13 02:33Dow Jones Industrial Average tumbles as US inflation kicks higher
The Dow Jones Industrial Average (DJIA) tumbled on Wednesday,dropping over 400 points at its lowest and dipping into 44090.
New
2025.02.13 02:06BoE's Greene: hesitant to say a trade war is helpful for inflation
Bank of England (BoE) policymaker Megan Greene noted on Wednesday that a cautious approach is probably the best approach when it comes to easing monetary policy.
New
2025.02.13 01:21EUR/USD Price Analysis: Bulls push higher but face key resistance
The EUR/USD pair edged higher to 1.0375 on Wednesday, as buyers extended their recent recovery efforts.
New
2025.02.13 00:56GBP/USD drops below 1.2400 after US CPI data
The Pound Sterling slipped during the North American session after the latest United States (US) inflation report showed that prices continued to rise, pushing back expectations of a Federal Reserve rate cut in the first half of 2025.
New
2025.02.12 23:57USD/CAD jumps as hot US CPI boosts Fed 'higher for longer' interest rates bets
The USD/CAD pair climbs to near 1.4340 in North American trading hours on Wednesday.
New
2025.02.12 23:48AUD/USD flirts with weekly lows near 0.6230 post US CPI
The US Dollar caught a fresh wave of buying on Wednesday, vaulting the US Dollar Index (DXY) to weekly highs above 108.00.
New
2025.02.12 23:07USD/JPY rises to fresh weekly high above 154.00 after US inflation data
USD/JPY gathered bullish momentum in the early American session on Wednesday and reached a fresh weekly high near 154.50.
New
2025.02.12 22:54Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
