The USD/JPY pair has reached new highs at 114.70 as the US dollar takes up more ground on the bid to 95.925 vs a basket of rival currencies as measured by the DXY index.
As exemplified, the move started in Tokyo and just kept on going throughout London and New York right into the final hours of Wall Street.
The US dollar has been better bid ever since US inflation data last week shocked to the upside and showed consumer prices surged to their highest rate since 1990. Investors now expect that the Federal Reserve will taper their QE program at a quicker tempo. More hawkishly, some viewers even expect that the Fed could potentially hike interest rates sooner than first anticipated in the markets.
Looking forward for today, in the US we have a couple of Housing statistics coming out and some Fed speeches.
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