- European Central Bank chief economist Lane speaking on policy in Ireland on Thursday
- China suspends tariff cuts on some Taiwanese imports amid heightened concerns
- USD/JPY dropping under 143.00 - signs of higher inflation in Japan weighing
- Japan's government raises its GDP growth estimates for FY2023/24 and FY2024/25
- PBOC sets USD/ CNY reference rate for today at 7.1012 (vs. estimate at 7.1401)
- Japan inflation data preview, core to be above the 2% BOJ target for more than a year.
- PBOC is expected to set the USD/CNY reference rate at 7.1401 – Reuters estimate
- UK business confidence has dropped to 35% in December, biggest plunge in more than a year,
- Fed needs to cut by 100bp just to get to neutral, not their job to push back equity rally
- Japanese incomes projected to increase by 3.8% in fiscal 2024, surpassing inflation
- ICYMI - Goldman Sachs brings forward its BOE rate cut forecast to May from June previously
- Forexlive Americas FX news wrap 20 Dec:US stocks down. Yields down & USD higher.Weird day
- Morgan Stanley predict the Federal Reserve may not cut interest rates until June
- Trade ideas thread - Thursday, 21 December, insightful charts, technical analysis, ideas
USD/JPY was a notable mover on the session, dropping back under 143.00. The Cabinet Office issued their half-yearly economic report, raising its GDP forecasts and projecting 3% inflation with firms being able to pass on cost rises to consumers. Tomorrow we get the latest CPI data for the country which will show core inflation higher than the Bank of Japan 2% target for more than a year. Chatter of a Bank of Japan pivot away for ultra-loose monetary policy continues to flare.
Elsewhere across major FX we had some US dollar give-back of its gains on Wednesday, partial retracement moves. EUR, AUD, NZD, CAD all rose while cable lagged.
News and data flow was light, but as mentioned, tune in tomorrow for Japanese inflation data.
