Japan inflation maintains positive momentum
|Japan August inflation report came in roughly in line with expectations and left investors with no choice but to look abroad for a driver. Headline inflation beat forecast as it rose to 1.3%y/y compared to 1.1% expected and 0.9% in the previous month. However, most of the upside surprise come from the rise in fresh food prices, as the core measure, which excludes fresh food, matched estimates of 0.9%y/y, up from 0.8% in July. Even though it is only halfway to the BoJ’s target, the core measure has been maintaining a positive momentum since April and this trend is set to continue in the coming months.
USD/JPY rose 0.20% to 112.85 this morning amid renewed risk appetite. Equities rose across the board with the Chinese market surging the most, thanks to circulating rumours that China is about to cut import taxes from the majority of its trading partners. The timing of the announce suggests that the move is not only a way to stimulate domestic consumption but also to show the world that the country is of goodwill and continues to open up.
Stay on top of the markets with Swissquote’s News & Analysis
We expect the yen will recovers against the greenback as the BoJ started to reduce its bond purchase program for super-long maturity, while the Fed will most likely slowdown the pace of rate hike.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.