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Japanese Yen Under Pressure, US CPI In Focus

EMERGING MARKETS
  • The European Commission raised its eurozone growth forecast to 0.9% in 2023, up from 0.3% in its autumn estimates and said a feared technical recession around Q4 2022 and Q1 2023 will now be avoided, thanks to a strong labour market, falling energy prices and improving economic confidence.
  • JPY is sliding early Monday, with the currency weaker against all others in G10 just a few days out from the formal nomination of Ueda as the new BoJ governor. His nomination is expected to be presented to parliament tomorrow, ahead of which EUR/JPY sits back above the 50-dma at 141.55 and USD/JPY just shy of the Y133.00 handle.
  • Markets look to Tuesday for direction, with the January US CPI report in focus. Analysts look for CPI to slow to 6.2% Y/Y, and 5.5% for the core metric.

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