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Dollar firms on Waller reversal as USD/JPY nears 162.50
Markets priced higher for the July 29 Fed meeting, with odds of a rate hike at 40%, while USD/JPY rose but stalled near 162.50 amid ongoing intervention risk.
USFX markets were supported after a speech from Federal Reserve Governor Christopher Waller, which completed a shift back toward a more hawkish stance, Forexlive reports. Waller fretted about inflation and said Tuesday’s data will be key for what he advocates next, while also arguing his earlier concerns about the jobs market were misplaced.
In rate expectations, the market raised the odds of a July 29 rate hike to 40%, Forexlive said. USD/JPY climbed steadily but ultimately stalled near 162.50, with the report citing lingering threat of intervention.
The euro weakened after an early pop in Europe, trading about 30 pips lower to 1.1383, the outlet added. Oil rose nearly 10% after the US announced a total blockade on Iran, and fresh strikes on Iran were cited as part of the backdrop for market moves.
Elsewhere in markets, chip shares fell, with Micron down 4.9% and Intel down nearly 7%, according to Forexlive. In rates, Treasuries sold off as 2-year yields rose to the highest since February 2025, and the 10-year yield rose 4.66% amid concern that inflation is increasingly embedded.
Latest closeUSD/JPY 162.44 ▲0.1%