Japanese Yen consolidates against USD amid mixed fundamental cues
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The Japanese Yen edges lower following the release of Tokyo consumer inflation figures. The USD stalls the overnight slide from a multi-month top and lends support to USD/JPY. Traders remain on the sidelines amid the uncertainty ahead of Japan’s general election. The Japanese Yen (JPY) struggles to capitalize on the previous day’s recovery move against its American counterpart and attracts fresh sellers during the Asian session on Friday. Data released on Thursday showed business activity in Japan’s manufacturing and services sectors contracted in October. Adding to this, a fall in Tokyo’s core inflation rate below the Bank of Japan’s (BoJ) 2% target tempers expectations about any further rate hike in 2024 and exerts some pressure on the JPY. Apart from this, a generally positive risk tone further undermines the JPY’s safe-haven status, which, along with the emergence of some US Dollar (USD) buying, assists the USD/JPY pair to find some support ahead of mid-151.00s. That said, the recent verbal intervention by Japanese authorities helps limit any meaningful JPY downfall and cap the currency pair. Traders now look to the US macro data for short-term impetus amid the political uncertainty ahead of Japan’s general election on Sunday. Daily Digest Market Movers: Japanese Yen lacks firm directional bias amid BoJ/election-related uncertainty The Statistics Bureau of Japan reported this Friday that the headline Tokyo Consumer Price Index (CPI) rose by the 1.8% YoY rate in October as compared to 2.2% in the previous month. Further details revealed that Core CPI, which excludes volatile fresh food prices, grew 1.8% in October, down from 2% in the prior month but slightly above market expectations of 1.7%. A core reading that excludes both fresh food and energy prices, rose from 1.6% in September to 1.8% during the reported month, still below the Bank of Japan’s 2%…
Filed under: News - @ October 25, 2024 3:13 am