Core Inflation

Japan’s July inflation data strengthened expectations that the Bank of Japan could lift its policy rate in September. Even so, wide rate gaps with the Federal Reserve, European Central Bank and Bank of England may continue to shape the direction of major yen pairs.

Bitcoin remained locked in a nearly two month consolidation as traders awaited the July Federal Reserve interest rate decision. Technical traders are watching whether BTC/USD can clear $66,820 after recovering from this month’s low of $57,200.

The US Dollar Index held near 101.07 as markets assessed FOMC minutes that pointed to sticky core inflation and a cautious Federal Reserve stance. EUR/USD defended the 1.1440 area while GBP/USD held around 1.3388, keeping major pairs locked in two-way technical conditions.