Asian markets had the Federal Open Market Committee (FOMC) minutes to digest during the session and then the September US inflation data to look forw
Asian
markets had the Federal Open Market Committee (FOMC) minutes to
digest during the session and then the September US inflation data to
look forward to. Major FX traded in limited ranges for the session.
There
wasn’t much fresh news to prompt activity. US Treasury Secretary
Yellen spoke, her comments were wide-ranging but of little impact on
the session.
On
the data front Japanese wholesale level inflation (the PPI for
September) surprised to the topside. Higher commodity prices and the
weak yen impacting (import prices in yen rose 48% y/y, and 21% y/y in
USD terms). The flow-through from high PPI to CPI has been limited in
Japan but the data today looks like it’ll hold Japan’s CPI at
recent highs. The Bank of Japan is sticking to its view that the CPI
levels are not sustainable, the Bank wants to see wage gains in order
to alter their view.
USD/JPY
consolidated its gains, trading circa 146.70/90 for the session.
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Do you have your CPI trading playbook ready for tomorrow’s big release?
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