What’s next? – USDJPY 18.05.18

The dollar was trading 0.10 percent higher vs the Japanese yen at 110.86 as of 06:25 GMT on Friday, as the dollar continued to increase on the back of higher US bond yields.

The yield of US 10-Year Treasuries  moved to 3.122%, adding 0.43%, in early trading hours - the highest level since 2011. Higher yields boost the dollar’s position.

The US dollar index, which measures the greenback’s strength against a basket of six major competitors, was down 0.04 percent at 93.34 by the time of this writing.

Still, the world’s most popular currency remained well above the 93 level. Overnight, the dollar index reached a fresh 2018 high at 93.46.

Expectations for Federal Reserve monetary policy chances are currently a key issue for investors. The Fed has anticipated three interest rate hikes for this year.

Fed funds tracked by CME Group’s FedWatch tool show that market participants are currently weighing in a 95 percent probability of a rate hike in the June monetary policy meeting.

“Our judgment at the Dallas Fed is that we are either at or already past full employment,” said Dallas Fed Bank President Robert Kaplan at a chamber of commerce event in Richardson, TX.

In other news, Minneapolis Fed Bank President Neel Kashkari said Thursday US wage growth is a “big conundrum” despite a context of really low unemployment.

The pair is likely to remain on positive vias as the Bank of Japan keeps monetary policy extremely loose in comparison to the Federal Reserve.

FortFS