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
Oil - US Crude
More View more
Real Time News
  • The $JPY is overwhelmingly in the grip of fundamental and macro action, but $USDJPY charts show the pair in a fascinating spot. Get your market update from @DavidCottleFX here:https://t.co/nD8RuyzvGG https://t.co/uAp5lVBVsN
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.02% Gold: -0.04% Silver: -0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/owUiiLQFGA
  • Since early February, the economic news flow from Australia has been increasingly out-performing relative to economists’ expectations – Citi. #AUD
  • Polls are suggesting Canadian Prime Minister Justin Trudeau is set to secure a second term, though he may not be able to command an outright majority and will have to rely on other parties to govern - BBG #CanadianDollar #CAD #CanadaElection2019
  • $USDCAD little changed on preliminary results in #CanadaElection2019 that Trudeau's party is expected to win. Unclear yet if a minority or majority. Focus for the #Loonie seems to be on risk trends as #SP500 futures trims prior gains in Asia trade - https://t.co/QriyVBMM0w https://t.co/i2NNk1fNYe
  • Trudeau’s liberals projected to win Canada Election -Bloomberg quoting CTV
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.25% 🇬🇧GBP: 0.14% 🇨🇦CAD: 0.06% 🇯🇵JPY: -0.02% 🇦🇺AUD: -0.04% 🇨🇭CHF: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/RbMmTVJpMj
  • RT @CBCAlerts: BREAKING: CBC is projecting a Liberal government. Whether it will be a minority or majority government remains to be seen.
  • RT @LiveSquawk: Chinese Vice Foreign Min: We Have Achieved Some Progress In Trade Talks With The US; Hopeful An Agreement Will Be Reached
  • LIVE NOW Join Senior Strategist @IlyaSpivak as he discusses the technical and fundamental AUD/USD outlook for the week ahead. Register here: https://www.dailyfx.com/webinars/378612179?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
Japanese Yen Looks Past CPI as Markets Eye Fed at Jackson Hole

Japanese Yen Looks Past CPI as Markets Eye Fed at Jackson Hole

2018-08-24 00:00:00
Dimitri Zabelin, Junior Currency Analyst

Talking Points:

  • Japanese inflation data cautiously fell below economists’ expectations in July
  • Bank of Japan is unlikely to make policy adjustment in near-term as inflation remains below 2%
  • Markets and Japanese Yen eye the upcoming Jackson Hole Central Bank Symposium

The Japanese Yen did not have significant price movement against its US counterpart as local CPI data showed a 0.9% annualized headline price growth rate. This fell short of the 1.0% forecast. The market’s response to the new data indicates that other factors are possibly playing a more significant role in influencing the Yen’s movement.

The BOJ is not likely to significantly alter its monetary policy in the near future with its focus chiefly on achieving a 2% inflation target. The price growth rate (excluding fresh food) stood at just 0.8% as of July, also worse than the 0.9% expected outcome. Overnight index swaps are currently pricing in a 32.3 percent probability of a Bank of Japan could hike rates by July of 2019.

Looking ahead, the markets are now focusing on the upcoming Jackson Hole Central Banking Symposium. Fed Chairman Jerome Powell will be discussing the economy and monetary policy on Friday at 14:00 GMT and may boost the US Dollar. Markets are also closely watching developments of the US-China trade war and its implications on global growth and influences on Fed monetary policy.

Yen-Dollar movement - 5 Minute Chart

See our free guide to learn how to use economic news in your trading strategy!

Trading Resources

--- Written by Dimitri Zabelin, Junior Currency Analyst

To contact Dimitri, use the comments section below or @Zabelin.Dimitri on Twitter

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


News & Analysis at your fingertips.