USDJPY

11 Okt 2023

USD/JPY moves upward towards 149.00, US data eyed

- USD/JPY rises on positive risk sentiment amid Middle East conflict
- The pair trades higher around 148.80, rebounding from the previous session on the optimism in the midst of the war in Middle East.

- BoJ considers revising its inflation forecast for 2023/24
- The central bank is thinking of raising its core CPI estimate to 3% from 2.5%, reflecting a more confident outlook on inflation.

- Country Garden's potential default adds to China's property sector woes
- The Chinese developer may default on a $15 million coupon payment, which could have broader implications for the Japanese Yen and the Chinese economy.

- Japan's Current Account falls short of expectations in August
- The non-seasonally adjusted Current Account printed a reading of ¥2,279.7B, lower than the forecast of ¥3,090.9B and the previous reading of ¥2,771.7B, raising some concerns about Japan's economic performance.

- Fed policymakers express dovish views on interest rates and bond yields
- Several Fed officials, including Bostic, Kashkari, and others, said that the current monetary policy is already restrictive and more rate hikes are not needed. They also expressed worries that higher long-term US Treasury yields could hinder their policy stance.

- US inflation data and FOMC minutes in focus
- Market participants will closely watch the PPI data on Wednesday, followed by the CPI data and the FOMC meeting minutes on Thursday, for clues on the Fed's inflation outlook and policy direction.