Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💰 With a 129% YTD gain in the bag, these are our AI’s top global picks for March
Read now
USD/JPY Awaits U.S. Inflation Data
www.investing.com/analysis/usdjpy-waits-for-us-inflation-data-200304616
USD/JPY Awaits U.S. Inflation Data
By Boris Schlossberg | Apr 11, 2018 06:17AM ET Market Drivers April 11, 2018
Europe and Asia
GBP: UK IP/MP -0.2% vs. 0.2%
GBP: Trade Balance -10B vs. -11B
North America
USD: CPI 8:30
The FX markets were in a wary state of calm with very little price action in Asian and early European trade. There was a mild wave of risk aversion as traders prepared for a possible US air strike against Syria by the end of the week, but the sense of worry appeared to be contained as few market participants were anticipating a full-scale conflict.
Still, tensions in the region appear high, and things can certainly spin out of control if US action in some way touches Russian forces in the region. Relations between the two nuclear superpowers have reached a nadir recently, with a set of US sanctions against Russian businesses that have sent Russian assets from stock to bonds to the ruble all tumbling by double-digit rates over the past few days.
To that end, US military authorities no doubt perceive the geopolitical dangers of any move in Syria and are likely to take all the precautions necessary. Still, the pall of military conflict hangs over the FX market and may be responsible for the tight trading conditions today.
On the economic front, the data calendar remained quiet with only second-tier reports on the docket today. In UK the Industrial and Manufacturing data both missed their mark, with the later coming in at -0.2% vs. 0.2% eyed suggesting that activity is slowing down. The UK economy continues to send mixed signals, but unless the markets see material weakness in the services sector over the next month or so, the market is convinced that BoE will begin normalizing policy and will lift rates for the first time in years. Cable dropped on the miss of IP/MP data but quickly recovered recapturing the 1.4200 figure in morning London trade.
In US today the focus is on the CPI readings which are projected to print at 0.2% vs. 0.2% the period prior. However, given the uptick in PPI numbers yesterday, there is a chance that inflation could perk up which would provide the Fed with even more ammunition to tighten rates in June.
USD/JPY has been hugging the 107.00 level for the past 12 hours as the pair receded off the highs on risk aversion concerns, but if the data proves to be hotter than anticipated, the pair could make another run at the key 107.50 barrier as the recovery rally in USD/JPY continues.
Related Articles
10 Charts to Decode the Cross-Asset Signals Driving Stocks, Bonds, and...
By Ed Yardeni - Mar 06, 2025
1. S&P 500 Likely to Hold at 200-Day MA (1) Will S&P 500 indexes find support at their 200-day moving averages? We think so. Sentiment is quite bearish and the next batch...
Will Trump’s Presidency Trigger a US Recession?
By Timothy Fries - Mar 05, 2025
17
According to the most recent Polymarket odds, 39% of betters believe recession is on the table during 2025, which is an uptick of 18% over the last week. However, many hold the...
Volatility Playbook: 3 Lessons on How to Trade Headline-Driven...
By Kathy Lien - Mar 06, 2025
Lately, volatility has been off the charts. We’re seeing triple-digit swings in stocks, and the market is getting a real taste of the wild ride that comes with a president who...
USD/JPY Awaits U.S. Inflation Data
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.