Japanese Yen Resumes Daily Down Trend After In-line CPI Data
- Japan’s CPI 0.0% y/y in January as expected, down from 0.2% in December
- Core CPI 0.7% y/y, in line with forecasts and down from 0.8% y/y previously
- USD/JPY resumed intraday rally after CPI data matched status-quo outlook
The Yen resumed its intraday decline against the US Dollar after Japan’s inflation statistics crossed the wires. The headline figure registered flat at 0.0 percent year-on-year in January, in line with the consensus forecasts but down from December’s print at 0.2 percent. Core CPI – a measure excluding food and energy prices – came in at 0.7 percent year-on-year and also matched analysts’ expectations.The Japanese currency had been falling against the US Dollar for the majority of trading day. Prices paused for a bit ahead of the CPI release, with traders apparently waiting to see if event risk would offer a new directional lead. The intraday trend appeared to resume after the inflation data set printed mostly in line with expectations.
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