USD/JPY weakens near 150.00 after Japan CPI inflation data
USD/JPY weakened near 150.05 despite a stronger USD in the Asian session on Friday. Japan CPI inflation data fell from 3.0% to 2.5% in September. Upbeat US economic data strengthened the case for the Fed to cut interest rates by 25 bps.
The USD/JPY pair moved lower near 150.05 despite a stronger US dollar (USD) on Friday during the early Asian session. Investors will be keeping an eye on US Building Permits and Housing Starts, which will be released on Friday. Federal Reserve (Fed) officials Raphael Bostic, Neel Kashkari, and Christopher Waller are also due to speak later in the day.
Japan’s annual Consumer Price Index (CPI) rose 2.5% in September, compared to 3.0% reported in August, Statistics Bureau of Japan showed on Friday. Meanwhile, CPI excluding fresh food and energy grew 2.1% year-on-year in September. CPI excluding fresh food rose 2.4% year-on-year in the same period. The reading was slightly strongerthan the consensus estimate of 2.3%.
The slowdown in price increases may have limited impact on the Bank of Japan’s (BoJ) policy path. BoJ Governor Kazuo Ueda said the central bank will continue to raise interest rates if inflation remains on track to steadily hit its 2% target, adding that the BOJ will take its time to gauge how global economic uncertainty is affecting Japan’s fragile economic recovery. The BOJ is widely expected to hold its benchmark interest rate steady on Oct. 31. “The BOJ is waiting to see how the U.S. economy holds up before raising rates further. We think they will be able to confirm a soft landing in the U.S. by the time they hold their board meeting in January,” said Taro Kimura.
Source: FXStreet
