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.

Free Trading Guides
EUR/USD
Mixed
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
GBP/USD
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
USD/JPY
Bullish
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
Gold
Bearish
Oil - US Crude
Bearish
Bitcoin
Mixed
More View more
Real Time News
  • The #Euro recoiled from resistance near the 1.11 figure yet again, with signs of ebbing upside momentum warning that a downturn is brewing ahead. Get your $EURUSD technical analysis from @IlyaSpivak here: https://t.co/ynrkWTFayR https://t.co/2N7CB3UOYi
  • So far this week, #NZD has been the best-performing major versus #USD with +2.1% spot-returns while #KRW has been the worst with -0.77%
  • My video for the final trading day of the week: '#Dollar Index Sits on 19 Month Channel Floor as #NFPs Arrive' https://www.dailyfx.com/forex/video/daily_news_report/2019/12/06/Dollar-Index-Sits-on-19-Month-Channel-Floor-as-NFPs-Arrives.html?CHID=9&QPID=917719 https://t.co/ccL4PMDKA8
  • *I deleted all of my social media roughly 2 years ago and have not regretted it ever since. I (obviously) use Twitter, but exclusively for work purposes/trading/market news/analysis and intend on doing the same with the new Instagram account.
  • Poll: Should I create a profile on Instagram that posts my latest charts/market analysis/news updates/articles/trading ideas?*
  • US House Speaker Nancy Pelosi says that she doesn't think they are heading for a government shutdown -BBG
  • The $CAD rose on a hopeful tone from the Bank of Canada, but the largest risk to the central bank’s outlook remains unresolved. NZD/CAD has rallied. Will AUD/CAD follow as CAD/JPY sinks? Get your market update from @ddubrovskyFX here: https://t.co/AairskIHA5 https://t.co/z1Rs8JRVZA
  • #GBP, #BRL and #ZAR are expected to be the most-active major currencies against #USD with one-wekk implied volatility at 18.50, 10.70 and 10.48 respectively -BBG
  • RT @LiveSquawk: RTRS Poll: Washington And Beijing To Sign Interim Trade Deal Within Next 3 Months, Say Majority Of Economists
  • Indeed, you could see rising doubts of a US-China #tradedeal reflected at today's US T-Bill auction for the 4-week security ahead of the December 15 tariff deadline - https://t.co/L6YEhauvzw https://t.co/hTykbYCuVB
Japanese Yen Creeps Higher After As-Expected CPI

Japanese Yen Creeps Higher After As-Expected CPI

2017-03-03 00:05:00
David Cottle, Analyst
Share:

Talking Points

  • The Japanese Yen gained very slightly against the US Dollar following the release of Japanese inflation numbers
  • These were broadly as expected, with consumer prices ex-fresh-food creeping into positive territory
  • Overall pricing power remain extremely weak, however, and household spending took a big hit

The Japanese Yen didn’t move much against the US Dollar on Friday, although it strengthened a little, following the release of some broadly as-expected inflation data out of its home economy.

Japan’s official headline Consumer Price Index rose 0.4% on the year in January. That was exactly as markets had expected and only a tick above December’s 0.3% level. Excluding volatile fresh food prices the index was up 0.1%, just a little stronger than the flat reading expected. Stripping out both fresh food and energy prices, the CPI rose 0.2%, exactly as expected.

The final index is the one closest to the US “core” inflation measure, and it’s also the figure targeted by the Bank of Japan at 2%, so the huge task faced by the authorities in getting anywhere near that level is as clear as ever. Sadly for Tokyo that’s not news. There were some crumbs of comfort for policy makers, but only crumbs. The CPI excluding food prices was at least positive, if only just, having fallen for many months. Moreover on-month CPI inflation hit 1%, very high for the series.

USD/JPY slipped after the data, but by very little. It got down to 114.38 from 114.42 just before the release

Just a shrug. USD/JPY

Japanese Yen Creeps Higher After As-Expected CPI

Chart Compiled Using TradingVirw

Other numbers released at the same time proved a mixed bag. Overall household spending fell a chunky 1.2% on the year in January, well below the 0.4% fall predicted. The month’s jobless rate was as expected, though, at 3%, while the job-applicant ratio was steady at 1.43.

Overall these data do nothing to change the familiar picture of an economy desperately short of pricing power, despite a relatively buoyant employment picture. In any case the markets are currently focused on the US Federal Reserve and a heightened sense of certainty that it will raise interest rates this month.

Would you like live commentary and analysis on the day’s major-market moving events? Check out the DailyFX webinars.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter:@DavidCottleFX

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

DISCLOSURES

News & Analysis at your fingertips.