- US Core PCE Price Index (Fed preferred inflation indicator) is due Friday: Ranges to watch
- Japan's largest financial group CEO says Bank of Japan could end negative rates in January
- PBOC sets USD/ CNY reference rate for today at 7.0953 (vs. estimate at 7.1306)
- Australian November 2023 Private Sector Credit +0.4% m/m (prior +0.3%)
- Bank of China has cut rates on some yuan deposits (NOT PBOC!)
- BOJ October Minutes: To keep sustaining Yield Curve Control (YCC) to support wage growth
- Japan November CPI - all three inflation measures remain much higher than the BOJ target
- UBS predicts S&P 500 drop in Q1 2024, cautions on bull trap
- Middle East / Red Sea turmoil: Impact on inflation, oil prices, shipping costs
- Forexlive Americas FX news wrap: US dollar on the defensive
- US stocks rebound after the declines yesterday.
- Trade ideas thread - Friday, 22 December, insightful charts, technical analysis, ideas
USD/JPY tested briefly under 142.00 in the hour after the Japanese inflation data today. The data showed the CPI once again elevated well above the Bank of Japan's 2% target rate. This is a regular event, of course. USD/JPY has since rallied to around 142.50 on a bounce.
The USD was up a little more widely also. EUR, AUD, and NZD all dipped back a few points.
On the central bank front we had the minutes of the Bank of Japan October meeting. While this is old news there was nothing much in them to indicate any imminent pivot from the Bank. Members of the policy board did discuss communication strategies when they (eventually?) decide to exit from easy policy.
We still have the European and US sessions to come, with US inflation data (PCE indicators of inflation). Check out the post on the US PCE ranges to watch, a result outside the range of market expectations should prompt an extended move.
And thats it from me – I wish everyone a wonderful Christmas. If you don’t celebrate the day have a great break anyway, and go ahead and eat way too much ;-) . I’ll catch you all on the 27th for light coverage into the New Year, after which we’ll all hit it hard again!
