JPY Fundamental

The JPY weakened slightly after data showed that Japan’s nationwide core CPI drop 0.1 percent in May, reinforcing market expectation that the BOJ will only raise rates in gradual manner, thus, fueling the carry trades to begin all over again.

US Fundamental

The Dollar was a little changed yesterday after the FED announced its decision to keep interest rate unchanged as expected. The statement following was seen as a little hawkish as it repeated worries about inflation pressures but failed to mention concern regarding U.S. housing market or slow down in growth.