Yen Retreats as Market Focus Shifts to Nvidia Earnings and U.S. Economic Data

The Japanese yen snapped a two-week rally on Wednesday, sliding to a low of 156.82 against the dollar before settling at 156.70—a 0.50% decline. The currency's recent momentum cooled following reports that Prime Minister Sanae Takaichi expressed caution regarding further interest rate hikes, alongside escalating trade tensions with China. While the government recently nominated two stimulus-focused academics to the Bank of Japan’s board, analysts remain divided on whether this will significantly alter the central bank's monetary trajectory. Global markets are now pivoting toward Wednesday’s highly anticipated earnings report from Nvidia (NVDA.O), as the chip giant’s significant influence on the S&P 500 poses a potential catalyst for broader risk appetite. Meanwhile, the Australian dollar climbed 0.35% to $0.7084 following a rise in domestic inflation data. Elsewhere, the euro held steady at $1.1718, and the U.S. dollar index hovered at 97.92, as traders weigh the impact of potential trade policy shifts and ongoing U.S. economic uncertainty.