Illustration by TradingViewConsumer price index is expected to show inflation stayed flat at 3.1% on a monthly basis, signaling a continued cooldown.
Consumer price index is expected to show inflation stayed flat at 3.1% on a monthly basis, signaling a continued cooldown.
Key Points:
- Dollar sits tight near ¥147.50.
- US inflation to stir sentiment.
- Japan may hike rates in March.
- The
USDJPY pair ticked modestly higher in early Tuesday deals as forex traders were on their toes in anticipation of big news from the US. It’s Inflation Day today and markets are on edge to get the latest report that will further chart the Federal Reserve’s path toward this year’s rate-cutting campaign. - The dollar remained firm, floating near the ¥147.50 threshold, having retrieved some of the losses from the past few sessions. Today’s consumer price readout may turn out to be a catalyst for a big move in either direction. Analysts are calling for a flat pace of consumer price growth with a 3.1% increase in February, in line with January’s clip.
- In Japan, policymakers at the central bank—the Bank of Japan—are moving closer to an interest rate hike, Bloomberg reported earlier today. Japan is the only country to flaunt a negative interest rate regime. But recent signals from the BoJ have stoked speculation that the first rate hike since 2006 may come as soon as March or April.
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