USD/JPY began the session in Asia by extending its Thursday loss down close to 137.
USD/JPY
began the session in Asia by extending its Thursday loss down close
to 137.00. It has since bounced above 137.50. We had Japanese
inflation data for June published today, with core and core-core both
a little higher. The Bank of Japan, of course, is viewing current
levels as transitory and have given no indication they’ll be
backing away from their extraordinary loose monetary policy any time
soon. USD/JPY bounced off its session lows after the data. I’d be
reluctant to point to the CPI numbers as a smoking gun for the move,
despite the time correlation but I could be wrong.
EUR/USD
dropped back a little from late US highs above 1.0220 to back under
the figure. Not a big move. Cable, too, is off a little, as are
AUD/USD, NZD/USD. USD/CAD and USD/CHF are a few ticks higher, fitting
with the pattern seen elsewhere.
We had flash PMIs from Australia and Japan today, with plenty more to come from Europe and the US ahead. Those we had here were a little softer on the month but still in expansion.
www.forexlive.com