The Japanese Yen (JPY) underperforms its major currency peers during the European trading session on Thursday, with the USD/JPY pair trading 0.3% higher to near 159.00. The Japanese currency faces selling pressure as oil prices have gained ground amid fears over the sustainability of the ceasefire between the United States (US) and Iran announced on early Wednesday.
Japanese Yen Price Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the weakest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.11% | -0.08% | 0.30% | 0.06% | 0.20% | -0.19% | 0.00% | |
| EUR | 0.11% | 0.04% | 0.45% | 0.19% | 0.31% | -0.05% | 0.12% | |
| GBP | 0.08% | -0.04% | 0.38% | 0.14% | 0.26% | -0.11% | 0.08% | |
| JPY | -0.30% | -0.45% | -0.38% | -0.25% | -0.12% | -0.51% | -0.30% | |
| CAD | -0.06% | -0.19% | -0.14% | 0.25% | 0.15% | -0.25% | -0.05% | |
| AUD | -0.20% | -0.31% | -0.26% | 0.12% | -0.15% | -0.36% | -0.18% | |
| NZD | 0.19% | 0.05% | 0.11% | 0.51% | 0.25% | 0.36% | 0.18% | |
| CHF | -0.01% | -0.12% | -0.08% | 0.30% | 0.05% | 0.18% | -0.18% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
WTI Oil price is up 2.3% around $93.30 in the European trade amid uncertainty over the US-Iran truce sustainability. Currencies from economies, such as Japan, that rely heavily on imported oil to fulfill their energy needs tend to underperform in a high oil price environment.
Investors doubt the credibility of the truce as Israeli Defense Forces (IDF) continued their attacks on Iran-backed Houthis in Lebanon. According to a tweet from Iran’s parliament speaker and chief negotiator, Mohammad Bagher Qalibaf, the US has violated the first clause of the 10-point proposal, which states “an immediate ceasefire everywhere, including Lebanon and other regions, effective immediately”. Qalibaf added that it would be “unreasonable” to continue talks in the current conditions.
Meanwhile, both the US and Iran have confirmed that they are sending teams to Pakistan for the first round of talks, which are scheduled over the weekend.
During the press time, market sentiment is slightly risk-averse amid uncertainty over the US-Iran ceasefire’s longevity. S&P 500 futures are down 0.2% to near 6,770, reflecting weak investors’ risk appetite.
Going forward, investors will focus on the US Consumer Price Index (CPI) data for March, which will be released on Friday.
Economic Indicator
Consumer Price Index (YoY)
Inflationary or deflationary tendencies are measured by periodically summing the prices of a basket of representative goods and services and presenting the data as The Consumer Price Index (CPI). CPI data is compiled on a monthly basis and released by the US Department of Labor Statistics. The YoY reading compares the prices of goods in the reference month to the same month a year earlier.The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.
Read more.
Source: https://www.fxstreet.com/news/japanese-yen-underperforms-as-oil-prices-gain-ground-202604091043
