USD/JPY is up from its earlier lows after all the inflation data from Japan this morning:
- Tokyo area October inflation data: Headline 1.8% y/y (prior 2.2%)
- Japan September PPI Services (Corporate Services Price Index) 2.6% y/y (expected 2.7%)
In Tokyo, core consumer prices rose 1.8% y/y (exp 1.7, prior 2.0), a number below the BoJ's 2% target for the first time in five months. While Tokyo data is not Japan as a whole, it's a reasonable guide and considered a leading indicator.
- the core-core, which excludes fresh food and energy, and is closest to the US 'core' inflation measure, rose 1.8% y/y, up from 1.6% in September but still, of course, under the 2% target
The Bank of Japan meet next week (30 and 31 October). Do the inflation number matter? All indications from the Bank are that they'll carry on hiking, though markets expect not until December at the earliest.
USD/JPY update:
