Dollar/yen briefly fell to the 146 yen level on reports of Powell's dismissal as FRB chair.
【7/16Market Overview
During Tokyo time, the USD/JPY rose to the 149.18 level as the dollar-buying activity around the fixing and a recovery in the Nikkei after briefly slipping into negative territory supported gains149.18to the ¥1481st half of the European session, remaining range-bound around the low 148s.NYtime,6month USPPI(Producer Price Index) came in below expectations, sending USD/JPY lower to148.47yen, but later buying pressure emerged and it retraced to148.93yen. However, news that “President Trump discussed the possibility of dismissing Fed Chair Powell” in a meeting with Republican lawmakers, and reports that White House officials said “there is a high likelihood Trump will soon dismiss Powell” led to concerns about the Fed’s independence and policy confusion, pushing the dollar lower to brieflyFRBindependence and financial policy confusion, lifting USD/JPY to as low as146.91yen. Subsequently, President Trump said that he has no plans to dismiss Powell and that “the possibility of dismissing Powell is very low,” which reversed and brought back demand for USD/JPY to148.38yen.
【【】7/17Market View Market View