SINGAPORE/LONDON—The yen briefly weakened past the closely watched 145 per dollar level on Friday although traders’ fears of intervention by Japanese authorities kept it in check, while the dollar was also strong more broadly ahead of U.S. inflation data.
Barring unexpected interventions, the day’s main event for FX markets is the U.S. personal consumption expenditure price index, which will be released at 0830 EDT (1230 GMT) and will give the latest indicator of whether prices are slowing in the world’s largest economy.
Thursday data showing the resilience of the U.S. economy suggested the Federal Reserve has a cushion to raise interest rates further if inflation data requires it, and U.S. benchmark 10 year yields rose 14 basis points on Thursday as a result, their most since late March….