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Yen Ticks Away From Cycle Lows, Kishida To Dissolve Parliament Today

JPY

The U.S. calendar provided plenty of material to digest Wednesday, as participants scrutinised monthly CPI report & minutes from the FOMC's latest monetary policy meeting. USD/JPY jumped to a fresh cycle high as U.S. CPI came in at the top-end of analyst expectations, but reversed gains shortly thereafter, sliding into negative territory amid broad-based greenback sales seen as U.S. Tsy yield curve flattened.

  • PM Kishida will chair a special Cabinet meeting today to formally sign off on the dissolution of the House of Representatives. He will then call a general election for Oct 31, with official campaigning set to begin on Oct 19. The ruling LDP holds a healthy lead in opinion polls and is expected to easily win majority of seats.
  • Kyodo reported that PM Kishida will speak with South Korean Pres Moon by phone as soon as on Thursday.
  • Japan's final industrial output and a speech from BoJ's Noguchi take focus from here.
  • USD/JPY trades at Y113.27 at typing, little changed on the day. A deeper sell-off past Oct 11 low of Y112.08 would please bears. Conversely, a move through yesterday's high of Y113.80 would shift focus to the upper 2.0% 10-DMA envelope at Y114.46.

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