Created
: 2025.07.15
2025.07.15 20:40
The USD/JPY pair extends its two-day winning streak on Tuesday, revisits the two-month high around 148.00 during the European session. The pair trades firmly amid trade frictions between the United States (US) and Japan.
Last week, US President Donald Trump imposed 25% tariffs on imports from Japan, which are separate from sectoral levies, after failing to close a trade deal during the 90-day tariff pause period. However, Tokyo continues to negotiate trade with Washington to close a trade deal before the new deadline of August 1.
Earlier in the day, the Yomiuri newspaper reported that Japan's Prime Minister Shigeru Ishiba is expected to meet US Treasury Secretary Scott Bessent on Friday, while he will attend the US national day at the World Expo 2025.
The imposition of significant tariffs on Tokyo by Washington has kept the Japanese yen (JPY) on the back foot.
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies last 7 days. Japanese Yen was the weakest against the Australian Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | 0.36% | 1.20% | 1.27% | 0.05% | -1.04% | 0.11% | -0.18% | |
EUR | -0.36% | 0.84% | 0.95% | -0.31% | -1.42% | -0.24% | -0.53% | |
GBP | -1.20% | -0.84% | 0.14% | -1.14% | -2.24% | -1.07% | -1.36% | |
JPY | -1.27% | -0.95% | -0.14% | -1.23% | -2.32% | -1.12% | -1.36% | |
CAD | -0.05% | 0.31% | 1.14% | 1.23% | -1.12% | 0.07% | -0.23% | |
AUD | 1.04% | 1.42% | 2.24% | 2.32% | 1.12% | 1.20% | 0.89% | |
NZD | -0.11% | 0.24% | 1.07% | 1.12% | -0.07% | -1.20% | -0.29% | |
CHF | 0.18% | 0.53% | 1.36% | 1.36% | 0.23% | -0.89% | 0.29% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
Meanwhile, investors await the US Consumer Price Index (CPI) data for June, which will be published at 12:30 GMT. Economists expect the US CPI data to have grown at a faster pace. The headline CPI is expected to have risen by 2.7%, faster than 2.4% in May.
Ahead of the US inflation data, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, trades close to the three-week high around 98.00.
Inflationary or deflationary tendencies are measured by periodically summing the prices of a basket of representative goods and services and presenting the data as The Consumer Price Index (CPI). CPI data is compiled on a monthly basis and released by the US Department of Labor Statistics. The YoY reading compares the prices of goods in the reference month to the same month a year earlier.The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.
Read more.Next release: Tue Jul 15, 2025 12:30
Frequency: Monthly
Consensus: 2.7%
Previous: 2.4%
Source: US Bureau of Labor Statistics
The US Federal Reserve (Fed) has a dual mandate of maintaining price stability and maximum employment. According to such mandate, inflation should be at around 2% YoY and has become the weakest pillar of the central bank's directive ever since the world suffered a pandemic, which extends to these days. Price pressures keep rising amid supply-chain issues and bottlenecks, with the Consumer Price Index (CPI) hanging at multi-decade highs. The Fed has already taken measures to tame inflation and is expected to maintain an aggressive stance in the foreseeable future.
Created
: 2025.07.15
Last updated
: 2025.07.15
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