The American dollar advanced more than 1% to kick off trading ahead of a stacked week.
The USD/JPY pair was trading fairly flat this morning after a strong upside swing on Monday. The dollar leaped higher by about 1.5%, or 200 pips, against the Japanese yen, as currency traders flocked to the greenback just as the US economy gets cracking on the news front.
The US inflation data for March is slated for Wednesday. With that, traders will be parsing the latest FOMC minutes from the Fed’s meeting three weeks ago. While price pressures are expected to have cooled, central bankers might have been cooking another hot rate hike dish.
In that context, the USD/JPY exchange rate stayed put in today’s early-hours dealmaking. Over the past three days, however, the dollar has been logging win after win, gaining a total of 2%, or just under 300 pips, against a weaker yen. Watch out for volatility this week as reports get churned out.
