Tokyo Inflation Slows: Impact on JPY and USD/JPY

JPY: Tokyo inflation slows

JPY: Tokyo inflation slows

Inflation figures for Tokyo were released overnight, showing a deceleration in price pressures which were in line with the Bank of Japan estimates and slightly below consensus. Inflation in the capital moved below the 3% mark in August for the first time since September 2022, essentially endorsing the BoJ’s reluctance to scale back monetary easing.

USD/JPY has risen steadily in line with rebounding US treasury yields since yesterday’s early session when it touched a 144.50 low. We think that a hawkish tone by Powell is largely priced in today, but should be enough to keep USD/JPY around 146.00 for today.

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Topics

usd/jpy bank of japan powell capital Price pressures US Treasury yields deceleration consensus monetary easing hawkish tone Tokyo inflation estimates August 3% mark September 2022 rebounding priced in 146.00.

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