Japanese Yen Futures Market News and Commentary
The dollar index (DXY00) this morning is up +0.371 (+0.38%). Sep euro-fx futures (E6U9) are down -0.0045 (-0.40%), and EUR/USD (^EURUSD) is down -0.0042 (-0.37%). Sep yen futures (J6U9) are down -0.23 (-0.24%), and USD/JPY (^USDJPY) rose +0.27 (+0.25%). The dollar index is higher this morning on weakness in EUR/USD and GBP/USD and also on strength in U.S. economic data. EUR/USD moved lower after today's German July ZEW expectations index fell by -3.4 points to a 9-month low of -24.5, weaker than expectations of -0.9 to -22.0. GBP/USD slumped to a 2-1/4 year low today on concern about a no-deal Brexit after a report today said the EU is bracing for the prospect of Boris Johnson becoming the next UK Prime Minister. Johnson has said he will leave the EU on Oct 31, with or without a Brexit deal with the EU. Boris Johnson is expected to be named the next Prime Minister next week after the Conservative Party election concludes. The dollar extended its gains after today's U.S. economic data showed that U.S. June retail sales rose +0.4% and +0.4% ex-autos, stronger than expectations of +0.2% and +0.1% ex-autos. USD/JPY is higher today as a rally in stocks this morning has diminished safe-haven demand for the yen. The dollar continues to be undercut by last week's dovish commentary by Fed Chair Powell and by expectations that the Fed will cut interest rates at the July 30-31 FOMC meeting.