Later in the session, consumer sentiment trends will give insights into spending and inflation trends. Economists forecast the Michigan Consumer Sentiment Index to increase to 53.5 in June, up from 52.2 in May.
A stronger print could signal a pickup in consumer spending, potentially fueling demand-driven inflation. Rising inflation may temper expectations of a 2025 Fed rate cut. A more hawkish Fed stance may drive USD/JPY toward 145. Conversely, a sharp drop in sentiment could rekindle US recession fears and revive Fed rate cut bets. In this scenario, USD/JPY may drop toward 140.
