Forexlive Americas FX news wrap: USD/JPY breaks 141 as yen shorts buy the dip

<ul><li><a href="https://www.forexlive.com/news/us-june-core-pce-inflation-41-yy-vs-42-expected-20230728/">US June core PCE inflation +4.1% y/y vs +4.2% expected</a></li><li><a href="https://www.forexlive.com/news/canada-gdp-for-may-03-versus-03-expected-20230728/">Canada GDP for May +0.3% versus +0.3% expected</a></li><li><a href="https://www.forexlive.com/news/us-employment-costs-for-q2-10-versus-11-expected-20230728/">US employment costs for Q2 1.0% versus 1.1% expected</a></li><li><a href="https://www.forexlive.com/news/germany-july-preliminary-cpi-62-vs-62-yy-expected-20230728/">Germany July preliminary CPI +6.2% vs +6.2% y/y expected</a></li><li><a href="https://www.forexlive.com/news/july-final-umich-us-consumer-sentiment-716-vs-726-expected-20230728/">July final UMich US consumer sentiment 71.6 vs 72.6 expected</a></li><li><a href="https://www.forexlive.com/centralbank/atlanta-fed-gdpnow-model-starts-q3-growth-at-35-20230728/">Atlanta Fed GDPNow model starts Q3 growth at 3.5%</a></li><li><a href="https://www.forexlive.com/news/dallas-fed-june-trimmed-mean-price-index-falls-to-25-mm-annualized-versus-32-prior-20230728/">Dallas Fed June trimmed mean price index falls to 2.5% m/m annualized versus 3.2% prior</a></li><li><a href="https://www.forexlive.com/centralbank/former-ecb-vp-says-no-need-for-more-hikes-20230728/">Former ECB VP says 'no need for more hikes'</a></li><li><a href="https://www.forexlive.com/centralbank/canadian-q2-gdp-is-tracking-at-about-1-20230728/">Canadian Q2 GDP is tracking at about 1%</a></li><li><a href="https://www.forexlive.com/news/baker-hughes-weekly-us-oil-rig-count-1-20230728/">Baker Hughes weekly US oil rig count -1</a></li></ul><p>Markets:</p><ul><li>Gold up $14 to $1958</li><li>US 10-year yields down 4.9 bps to 3.96%</li><li>WTI crude oil up $0.33 to $80.42</li><li>S&amp;P 500 up 45 points, or 1.0%, to 4608</li><li>GBP leads, JPY lags</li></ul><p>The Bank of Japan offered plenty of volatility and drama to wrap up a busy week for central bankers but as the dust settled the market grew comfortable selling the yen. USD/JPY started US trade near 139.00 before finishing near 141.00 after several moves in that wide range in the past 24 hours.</p><p>Helping the move were lower yields after a goldilocks US PCE report and falling employment cost index. </p><p>Outside of the yen, trading wasn't exactly straightforward as a positive risk trade certainly didn't flow into commodity FX, perhaps owing to domestic concerns and month-end flows. USD/CAD finished slightly higher despite another gain in crude and a rip in equities. AUD/USD tried to mount a comeback in North America but made little progress and finished the day down 0.8% as the market frets about next week's RBA decision.</p><p>The euro and pound finished higher but only recovered a portion of the drop a day earlier. The gains came early in Europe and it was mostly sideways in North America with volatility low compared to JPY trades.</p><p>Have a great weekend, it was certainly an interesting week. Note that the VIX is down to 13 as the market grows increasingly sanguine.</p>

This article was written by Adam Button at www.forexlive.com.