News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZX8cS https://t.co/qdrsi61CN8
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2021? Find out from @JohnKicklighter here: https://t.co/1oeXWEsJkb https://t.co/IyQdfq29fz
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/R7pa7DsM8n
  • What are some monetary policies that could affect Gold this quarter? Get your Gold free forecast here: https://t.co/bTXkGN1CIM #DailyFXGuides https://t.co/EhdZpmkzaH
  • Even more remarkable than the record high levels of leverage registered in US equities this past week was the attention it garnered. Paying attention to risk is a threat when markets are this high and the docket as dense as it is this week. My outlook: https://www.dailyfx.com/forex/video/daily_news_report/2021/01/23/Dow-VIX-Tesla-and-Leverage-Reflect-Greater-Risk-to-the-Relentless-Bull-Market.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/KBOJIRPTQe
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/qP2PbS4dsY
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here: https://t.co/qV3c7a4YR3 https://t.co/POGWDIkqqz
  • USD hegemony is at risk thanks to changes in the global economy and the long-term consequences of the US-China trade war. Get your market update from @CVecchioFX here: https://t.co/5GO9UrvO4y https://t.co/H76jNJJxU5
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/1TiEWCbJ6t
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/fN2mfHgpON
Forex News: USD/JPY Plummets after Surprisingly Weak November CPI

Forex News: USD/JPY Plummets after Surprisingly Weak November CPI

Christopher Vecchio, CFA, Senior Strategist

THE TAKEAWAY: USD Consumer Price Index (NOV) > -0.3% versus -0.2% expected, from +0.1% (m/m); +1.8% versus +1.9% expected, from +2.2% (y/y) > USD Consumer Price Index ex Food & Energy (NOV) > +0.1% versus +0.2% expected, from +0.2% (m/m) > +1.9% versus +2.0% expected, from +2.0% (y/y) > USDJPY BEARISH

Federal Reserve policymakers were vindicated today as the November Consumer Price Index report showed that both inflation and disinflation are starting to come back to the US economy. For the most part, the divergence between the headline reading and the core reading suggests that falling energy prices may be the culprit for the decline; indeed, the Energy subcomponent dropped by -4.1% m/m. On a monthly-basis, headline inflation contracted by -0.3%, signaling deflation, while the core reading came in at +0.1% m/m. On a yearly-basis, the headline figure rose by +1.8%, while the core reading was a shade weaker at +1.9% y/y.

It is worth noting that these figures come at a time following Hurricane Sandy, which put economic activity in the Northeastern US on hold for more than a week (Transportation costs fell by -2.6% m/m in November), which hurts consumption and demand-driven inflation; and the beginning of the holiday sales period at the end of the month saw retailers slash prices across the board – these lower prices are also reflected in the figure (the Apparel subcomponent fell by -0.6% m/m).

USD/JPY 1-minute Chart: December 14, 2012

Forex_News_USDJPY_Plummets_After_Surprisingly_Weak_November_CPI_body_Picture_1.png, Forex News: USD/JPY Plummets after Surprisingly Weak November CPI

Charts Created using Marketscope – Prepared by Christopher Vecchio

Following the data, yields supporting the US Dollar fell, with the USDPY dropping from 83.70 just ahead of the release to as low as 83.46 in the minutes after. However, at the time this report was written, the pair had rebounded back to 83.58.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES