- USD/JPY pair gained traction in the early American session.
- US Dollar Index continues to have a tough time climbing above 93.00.
- Personal Spending in the US rose more than expected in June.
The USD/JPY pair extended its daily rebound in the early American session and touched a fresh daily high of 105.20. As of writing, the pair was up 0.4% on a daily basis at 105.13.
DXY rises modestly following US data dump
The data published by the US Bureau of Economic Analysis showed on Friday that Personal Spending in June increased by 5.6% and came in slightly better than the market expectation of 5.5%. On a negative note, however, Personal Income declined by 1.1% in the same period. Finally, the core Personal Consumption Expenditures (PCE) Price Index edged lower to 0.9% on a yearly basis.
Later in the session, the ISM Chicago’s Purchasing Managers’ Index (PMI) and the University of Michigan’s Consumer Sentiment Survey will be looked upon for fresh catalysts.
The US Dollar Index (DXY) stretched higher with the initial reaction to the mixed US data and helped the pair preserve its bullish momentum. At the moment, the DXY is posting small daily gains at 92.97.
Meanwhile, the 10-year US Treasury bond yield is still down 1% on the day and USD/JPY’s upside could remain limited if T-bond yields fail to stage a rebound in the second half of the day.
Technical levels to watch for
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