Will the U.S. PPI and ECB meeting push the dollar-yen exchange rate into the 160-yen range?

Will the U.S. PPI and ECB meeting push the dollar-yen exchange rate into the 160-yen range?

11.06.2026 New

In the previous day’s U.S. currency markets, the May U.S. Consumer Price Index (CPI) rose 0.5% month-on-month and 4.2% year-on-year, with the overall index highlighting strong inflationary pressures.On the other hand, the core CPI rose only 0.2% month-on-month and 2.9% year-on-year, making it difficult for the U.S. dollar to see sustained buying momentum.The USD/JPY pair traded in a range between 160.25 and 160.43 yen in the Tokyo session, settling in the upper 160.30 range as of 5:00 PM. While the pair has recently broken above the key 160.00 level, resistance near 160.50 is likely to be a concern.On the downside, the focus will likely be on whether the area from 160.00 to around 159.50 acts as a support zone. Today, the U.S. May Producer Price Index (PPI) and initial jobless claims are scheduled for release, and we will be watching to see if there is a shift in the dollar’s direction following the U.S. CPI data.

European currencies were supported by expectations of an interest rate hike ahead of the European Central Bank (ECB) Governing Council meeting, with the euro holding steady against the dollar. The euro/dollar pair traded in a range of 1.1535 to 1.1558 in the Tokyo market and stood in the mid-1.1550s as of 5:00 p.m.While the pair is currently holding in the low 1.1500s, depending on the content of the ECB’s post-meeting statement and ECB President Lagarde’s press conference, it may attempt a rebound toward 1.1600 or test the 1.1500 level again.Resistance is likely to be found around 1.1580 to 1.1600, while support is likely to be around 1.1530 to 1.1500; we will need to monitor price movements after the European session.

Today’s key economic indicators include South Africa’s current account balance for January–March at 6:00 PM, the Turkish Central Bank’s policy rate at 8:00 PM, the European Central Bank (ECB)’s policy rate at 9:15 PM,the U.S. May Producer Price Index (PPI) and Core PPI at 21:30, U.S. initial jobless claims and continuing claims for the previous week, and ECB President Lagarde’s press conference at 21:45.In particular, during New York trading hours, the U.S. PPI and the ECB Governing Council meeting will occur simultaneously, so we will need to carefully assess whether a clear direction emerges for the U.S. dollar, the yen, and the euro.