Talking Points:
- USDJPY little changed after Japanese data crossed the wires
- Japan’s national CPI fell to 0.4% y/y in June versus 0.5% in May
- CPI remains in line with BOJs’ expectations for the time being
The Japanese Yen was little changed versus the US Dollar after Japan’s CPI figures crossed the wires. National CPI fell to 0.4 percent year-over-year (YoY) in June versus 0.5 percent in May. National CPI, excluding fresh food, remained unchanged at 0.1 percent (YoY) in June. Finally, national CPI, excluding food and energy, increased to 0.6 percent (YoY) in June versus 0.4 percent in May.
In its July monetary policy statement, the Bank of Japan said that CPI will likely remain 0 percent for the time being. The data appeared to have no significant impact on expectations for the BOJ as it continues to implement open-ended quantitative easing in order to bring inflation to its 2 percent target. USDJPY likely declined in the aftermath on fueled risk aversion as the Nikkei 225 gapped lower on Friday’s open.
