From Financial Modeling Prep: 2025-05-14 03:10:00

Asian FX markets were mostly quiet due to softer U.S. inflation data and the U.S.-China tariff truce. The Japanese yen stood out by rallying on expectations of BOJ policy tightening.

U.S. April CPI rose 2.3% YoY and 0.2% MoM, below expectations. The tariff reduction agreement between the U.S. and China gives the Fed more flexibility on rate cuts.

ING analysts note that while trade tensions easing is positive for growth, it could keep inflation in check, limiting room for Fed rate cuts.

The divergence between the Fed and BOJ policies is evident in the strength of the Japanese yen.

Other Asian currencies remained subdued with minor fluctuations, influenced by global economic factors.

Upcoming events to watch include U.S. Fed speeches, BOJ policy meeting, and further trade negotiations, which could impact currency movements.

Investors can monitor FX rates and trends using the Forex Daily API to navigate the evolving macroeconomic landscape effectively.



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