With U.S. PCE Data on the Horizon, Can the Dollar-Yen Rate Hold Above the 163-Yen Level?

With U.S. PCE Data on the Horizon, Can the Dollar-Yen Rate Hold Above the 163-Yen Level?

30.07.2026 New

In the U.S. currency market the previous day, the U.S. dollar fell after the Federal Open Market Committee (FOMC) kept the policy interest rate unchanged at 3.50–3.75%. The decision was made by a 9-to-3 vote, with the three dissenting members advocating for a 0.25-point rate hike.The fact that Federal Reserve Chair Kevin Warsh did not provide a clear indication of the future policy path also capped the dollar’s upside. The dollar traded against the yen within a range of 163.23 to 163.92 yen, closing the previous day near 163.31 yen.The previous day’s trading range was approximately 69 sen, and the market is likely to focus on the upper range of around 163.90–164.00 yen and the lower range of around 163.20–163.30 yen.

Ahead of the Bank of England’s policy announcement, the pound rose against the U.S. dollar following the post-FOMC weakening of the dollar.The prevailing view is that the Bank of England will keep its policy rate unchanged at 3.75%, and the fact that the UK’s consumer price index for June slowed to a year-on-year rate of 2.6% is also being factored into the policy decision.The GBP/USD pair traded within a range of $1.3278 to $1.3389, closing near $1.3367 at the end of the previous day.The previous day’s trading range was approximately 111 pips, and the level around $1.3400 is likely to act as resistance, while the range of $1.3280 to $1.3300 is expected to serve as support.

Today’s key economic indicators include the Bank of England’s policy rate announcement and the minutes of the Monetary Policy Committee (MPC) at 8:00 p.m., followed by the preliminary July consumer price index for Germany at 9:00 p.m.At 21:30, the U.S. is scheduled to release preliminary figures for real gross domestic product (GDP) for the April–June quarter, the June PCE deflator, personal income, personal consumption expenditures, and initial jobless claims.U.S. GDP is expected to come in at an annualized 2.1% quarter-over-quarter, the PCE deflator at 3.7% year-over-year, and the core PCE deflator at 0.2% month-over-month and 3.3% year-over-year.Given the Bank of England’s voting results and U.S. inflation and growth indicators, investors should be aware of the possibility of increased volatility in the pound and the U.S. dollar.