Mitsubishi Ufj: Markets Await New Catalysts For The Dollar And U.S. Rates

Markets appear to be in a wait-and-see mode as they look for the next catalyst for the U.S. dollar and U.S. interest rates, Mitsubishi UFJ Bank senior FX analyst Michael Wan said in a research note. According to Jin10, Wan said global markets were expected to look for direction from key U.S. data points, including U.S. ISM services data and the release of Federal Reserve meeting minutes later this week, as well as U.S. CPI data next week. He added that markets were also closely watching whether Japanese authorities intervened in the foreign-exchange market last week to curb yen weakness. With USD/JPY continuing to hover near the 162 level, he said the uncertainty risk should not be underestimated.