USD/JPY: Yen could weaken following Japanese inflation data – Commerzbank
|USD/JPY has touched the 146.50 mark. Economists at Commerzbank anlayze JPY outlook ahead of the Japanese inflation data for July.
A rate of inflation well above expectations
The overall rate is likely to remain well above 3%, the core rate excluding energy and fresh food will likely remain well above 4%. There is no sign of improvement, both rates have remained above the target for several quarters, so the development can be seen as ‘sustainable’.
I see the possibility of the Yen weakening further following the publication of the data which in turn will then worry the Ministry of Finance (MOF) and might cause it to move from verbal to actual interventions. The latter will remain without effect in our view as they constitute a ‘leaning against the wind’.
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.