Dollar-yen touches new multi-month high

The USDJPY currency pair continued to stretch higher on Wednesday and touched its strongest level since July above 158.50. At noon, the pair was trading at 158.48, rising 0.27% on a daily basis.

U.S. President-elect Donald Trump is considering declaring a national economic emergency to allow for a new tariff programme, CNN reported on Wednesday, citing four sources familiar with the matter.

With the immediate reaction, the benchmark 10-year US Treasury bond yield rose above 4.7%, boosting the US Dollar.

Later in the day, the U.S. Automatic Data Processing (ADP) will release the private sector employment data for December, which is forecast to show an increase of 140,000 after November’s print of 146,000.

Also, the Federal Reserve will publish the minutes of the December policy meeting.

Investors will scrutinise the details surrounding the discussions on the policy outlook for 2025 after the revised Summary of Economic Projections showed a majority of policymakers were forecasting two 25 basis points rate cuts this year.

(Source: OANDA)