- USD/JPY hits a fresh daily high in the last hour, albeit lacks bullish conviction.
- The mostly upbeat US macro releases boost the USD and provide a modest lift.
- Bets for smaller Fed rate hikes continue to weigh on the buck and cap the upside.
The USD/JPY pair catches fresh bids during the early North American session and climbs to a fresh daily high, around the 130.30-130.35 region in reaction to the mostly upbeat US macro data. The momentum quickly runs out of steam and drags spot prices back to the 130.00 psychological mark in the last hour.
The intraday US Dollar recovery from the vicinity of an eight-month low picks up pace after the Advance US GDP report showed that the economy expanded by 2.9% annualized pace in the fourth quarter. This was below the 3.2% growth recorded in the previous quarter, though was better than consensus estimates for a reading of 2.6%. Adding to this, the headline Durable Goods Orders smashed expectations and rose 5.6% in December, providing a modest lift to the greenback and pushing the USD/JPY pair higher.
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