- China's November Industrial Profits rebound with 29.5% y/y Growth
- Goldman Sachs forecasting US inflation falling to low 2% y/y by US spring time
- Goldman Sachs' view on China for the year ahead is not confidence inspiring
- USD/JPY jumped after the BOJ December minutes showed no urgency on a pivot
- The BOJ December meeting summary is not suggestive of any urgent pivot
- Ex-Fed Dallas head Kaplan expects FOMC to lower rates soon, to avoid a flip side mistake
- US stocks off to a positive start for the trading week
- BOJ Gov Ueda said we're not there yet, prospect of achieving price target not high enough
- U.S. Treasury sells 2-year notes at a high yield of 4.314%
USD/JPY moved from 142.40 up to just above 142.80 after the Bank of Japan published its ‘Summary’ of the December meeting. The"Summary of Opinions" serves as a record of the discussion and views of the Policy Board members on economic, financial, and of course policy issues. The full Minutes of the meeting will be published on January 26 but the briefer Summary today indicated the Bank is not pressing ahead with removing YCC nor raising short term rates from their negative level any time soon. The next policy meeting is January 22 and 23.
Elsewhere across the majors we had minor moves only.
From China we had data on November industrial profits. These rose sharply in November from October, up almost 30% y/y. More in the bullet point above.
USD/JPY has since subsided back to where it started:
