US housing data was weaker, revealing that builders may be taking a breather with the high level of inventory. Building Permits in March decreased by 4.3%, with figures dipping to 1.458 million, less than the 1.514 million estimates and February’s 1.523 million. Consequently, Housing Starts plunged -14.7%, from 1.549 million to 1.321 million, below forecasts of 1.48 million.
Other data revealed by the US Federal Reserve (Fed) showed that Industrial Production in March remained unchanged at 0.4% MoM.
Despite that, Monday’s strong Retail Sales data sparked a reaction in the fixed-income market, with US Treasury yields having been rising more than 10 basis points during the week. Traders had trimmed their bets that the Fed might cut rates twice instead of three times, as the Chicago Board of Trade (CBOT) data depicted. The Fed is expected to drive the main reference rate to 4.965% towards the end of 2024.
On Monday, San Francisco Fed President Mary Daly said the US central bank is in no rush to ease policy. Meanwhile, USD/JPY traders await speeches by Fed’s Governor Jefferson, New York Fed John Williams, and Chair Jerome Powell.
According to Finance Minister Suzuki, Japanese authorities have remained vocal about “closely monitoring the latest developments” in the Forex market. Market participants had pushed the exchange rate past the 154.00 threshold, and no reaction by the Bank of Japan (BoJ) or the MoF might keep the rally alive.
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