JN BOJ Core CPI y/y

Japanese BOJ’s Core CPI comes out in line with last week’s National CPI data. Bob Iaccino discusses how stronger-than-expected CPI data impacts Yen futures, which have been in a sideways correction since their high close on Feb. 21.

Bank of Japan meeting minutes due Wednesday. Bob Iaccino has more.

The Bank of Japan’s key measurements of underlying inflation in April all fell below its 2% target for the first time since August 2022, data showed on Tuesday, heightening uncertainty on the timing of its next interest rate hike. The weighted median inflation rate, among the three indicators closely watched as a gauge on whether price rises are broadening, rose 1.1% in April from a year earlier after a 1.3% gain in March, the data showed. The trimmed mean index, which excludes the upper and lower tails of the price change ...

Tomorrow sees the release of the latest CPI report from the BOJ. But analysts generally expect it to largely feed into general rhetoric that seems to suggest that ultra-easing won’t change. The thought was that if inflation picked up in Japan, then the BOJ would be forced to take a more hawkish stance. But the faster growth in prices over the last several months is fading. And it comes at a crucial time for when there was initially speculation that negative rates would be ended. Japan headline inflation is expected to be reported at ...

FX markets enter the new week with market sentiment firmly risk-on with all-time highs seen in US and Japanese indexes after a blowout earnings report from AI darling Nvidia (NVDA) sent stocks surging. Ahead this week we have key inflation data out of the US, Australia and Japan along with a RBNZ rate decision which is certainly in play. The Charts to watch this week Gold – XAUUSD Despite the buoyant market sentiment gold gained last week as the USD chopped around without real direction. XAUUSD finding good support at the 2020 USD an ...

video The Fed is in no rush to ease policy and markets are finally starting to come round to the prospect of no rate cuts before the summer. Yet, stock markets have remained bullish, suggesting that the fact alone that interest rates will start to fall this year is enough to spur optimism. For the US dollar, however, any further delay could be crucial for its year-to-date uptrend, hence, next week’s releases will form one of the last pieces of the puzzle before the March FOMC meeting. Specifically, all eyes will be on the personal ...

video Following a relatively quiet week in terms of economic data and events, the spotlight now turns to three major central banks: the Federal Reserve, the European Central Bank, and the Bank of Japan. With investors anticipating only one more hike by the Fed, the focus will be on whether officials will signal the end of this hiking cycle, while with several ECB members pushing back on a September hike, it will be interesting to see whether Lagarde has also changed her stance. As for the BoJ, Governor Ueda’s latest remarks added ...

Whilst Germany’s Ifo business sentiment report showed a slight improvement, the expectations index fell to a 6-month low Growth stocks led Wall Street lower on Monday, with the Nasdaq 100 forming its daily high just below 15k and closing at the low of the day The S&P 500 also closed at the low of the day, but may find support around the August 2022 high around 4325. The Dow Jones formed a daily doji just above 33,600 – so perhaps swing lows are close to forming for indices this week Forex formed inside days during a low news, low ...