Market Overview

ForexLive Asia Wrap: Japan CPI Shows Continued Deflation

Japan CPI Nationwide for December came in at -0.1% YoY (vs. -0.2% expected)
Japan CPI: December Core Consumer Prices -0.2% on year (CPI ex-food), on expectations
Japan CPI: December Nationwide Ex Food & Energy came in at -0.6% YoY (vs. -0.5% expected)
BOJ Dec 19-20 Policy Board Meeting Minutes released
China MNI January Business Sentiment Indicator 55.16 (December was 52.22, November was 53.78)
The Japanese Finance Minister, Aso, commented: BOJ easing is aimed at beating deflation, not currency manipulation and Excessive Yen strength is being corrected
Rumours that the UK GDP figure would be +0.2% (against consensus view of -0.1%)

Most of the action today was in the early morning, with USD/JPY continuing the late part of its rally to a high of 90.69. Talk of the 90.75 DNT option seemed to cap it and it traded back to 90.30. It spent the balance of the day around 90.50 in a tight range.

The AUD lost more ground through the session, but the move was limited – to a low of 1.0439 before tracking sideways around 1.0440 for the rest of the day.

NZD, too, continued its overnight slide, but the fall slowed substantially; NZD low was 0.8365.

GBP/USD shrugged off some rumours of a better than expected Q4 GDP (see bullets, above) drifting a little lower through the session to register 1.5770.

EUR/USD … sshhh … you might wake it up. Tight range, but a little lower on the session ahead of the expected LTRO repayment announcement at 1100GMT.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: News Forex Global Economics Markets Trading Ideas

 

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