Free Trial
MNI EXCLUSIVE

Outlook For BOE Gilt Purchases And Sales

RUSSIA

Weekly CPI Rises For Second Consecutive Week

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

USD/JPY Resilient To US Yield Dip, National CPI Due Out Shortly

JPY

USD/JPY is just under 135.90 currently, very close to overnight highs. Overnight dips into the 134.60/70 region were supported. Current USD/JPY levels are a little higher relative to overnight US yield momentum, which faltered at the short end (2yr down 9bps to just under 3.20%). The 10yr was only down a touch to 2.88%, but there is a modest wedge with current yen levels. The domestic focus is firmly on national CPI data for July, due out shortly.

  • The market expects headline YoY to print at 2.6%, from 2.4% previously. Ex fresh food is forecast at 2.4% (from 2.2% prior), ex energy 1.1% from 1.0% in June.
  • With the Tokyo CPI figures already out for August, today's print may not move market sentiment a great deal. This release continued to show upside momentum in headline measures (2.5% YoY), and ex food 2.3%.
  • With core inflation (ex energy) nto expected to print much above 1.0%, the debate around a potential BoJ policy shift may remain a slow burner, at least in the near term .
  • Elsewhere the firmer equity backdrop likely weighed on JPY at the margin, along with higher oil prices. Recall earlier this week Japan's weaker than expected trade figures.
201 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

USD/JPY is just under 135.90 currently, very close to overnight highs. Overnight dips into the 134.60/70 region were supported. Current USD/JPY levels are a little higher relative to overnight US yield momentum, which faltered at the short end (2yr down 9bps to just under 3.20%). The 10yr was only down a touch to 2.88%, but there is a modest wedge with current yen levels. The domestic focus is firmly on national CPI data for July, due out shortly.

  • The market expects headline YoY to print at 2.6%, from 2.4% previously. Ex fresh food is forecast at 2.4% (from 2.2% prior), ex energy 1.1% from 1.0% in June.
  • With the Tokyo CPI figures already out for August, today's print may not move market sentiment a great deal. This release continued to show upside momentum in headline measures (2.5% YoY), and ex food 2.3%.
  • With core inflation (ex energy) nto expected to print much above 1.0%, the debate around a potential BoJ policy shift may remain a slow burner, at least in the near term .
  • Elsewhere the firmer equity backdrop likely weighed on JPY at the margin, along with higher oil prices. Recall earlier this week Japan's weaker than expected trade figures.