Following Powell's dovish remarks as Fed chair, the dollar/yen briefly fell to 157.15 yen.

【7/15Market Overview

In Tokyo time, after the shooting incident involving the former President Trump, there was a view that he could win the U.S. presidential election, leading early in the morning to a “Trump trade” (dollar buying and U.S. Treasury selling) pushing USD/JPY up to158.42yen. However, expectations of intervention by the government and the Bank of Japan limited the upside. In European trading, with Fed Chair Powell’s remarks subdued,FRBcomments muted the rise, keeping the USD/JPY around158yen with little movement.In New York time, Powell,FRBchairman, said that “the last3 inflation indicators have boosted confidence,” and that the inflation rate for the second quarter “has further improved.” Markets interpreted this as dovish, and USD/JPY briefly fell below the prior week’s low of157.38yen, dropping to around157.15yen.FRBchairman, said that “the last3 inflation indicators have boosted confidence,” and that the inflation rate for the second quarter “has further improved.” Markets interpreted this as dovish, and USD/JPY briefly fell below the prior week’s low of157.38yen, dropping to around157.15yen.