The hawkish former FRB governor Warsh has been appointed as the next FRB chair, and the dollar-yen rose to 154.79 yen.

【1/30Market Outlook

During Tokyo time, the USD/JPY advanced as the core Tokyo CPI for January in the Tokyo metropolitan area came in softer than expected, prompting buying. Additionally, a report that former FRB governor Kevin Warsh could be named next FRB chair sparked speculative dollar buying, pushing it to as high as 154.14 yen. In European hours, the USD/JPY retraced and fell to around 153.70 yen. In New York time, President Trump officially announced the nomination of Warsh as next FRB chair. Several media had previously reported that Warsh is considered relatively hawkish among chair candidates, raising expectations that the Fed would have less room to cut rates, which boosted dollar buying and pushed USD/JPY to 154.79 yen.153.70yen level.NY time, President Trump officially announced the nomination of Warsh as the next FRB chair. Several media outlets had previously reported that Warsh is seen as relatively hawkish among chair candidates, leading to heightened expectations that the Fed would have difficulty cutting rates, which supported dollar buying and drove USD/JPY up to 154.79 yen.

【2/2Market View