USD/JPY declines following soft US CPI inflation

The USD/JPY pair is easing back, US Dollar sees broad-market selling pressure. US CPI inflation ticked lower, sparking rate cut hopes. Japanese GDP in the barrel for early Thursday. The USD/JPY pair eased on Wednesday, backsliding into the 155.00 handle after the US Dollar (USD) eased across the board, shedding weight against all of its major currency peers. The Japanese Yen (JPY) is also finding a reprieve from broad-market selling pressure, recovering ground as the Greenback recedes.

US Consumer Price Index (CPI) inflation ticked lower on Wednesday, with headline CPI inflation in April ticking down to 0.3% compared to the market’s forecast of a hold at 0.4%. Easing inflation pressures are sparking a rise in rate cut hopes as investors clamor for a rate trim from the Federal Reserve (Fed).

Up next is Japan’s Gross Domestic Product (GDP) growth, slated for during Thursday’s early Pacific market session. Japan’s growth is forecast to contract in the first quarter, expected to print at -0.4% compared to the previous quarter’s 0.1%.