Tokyo’s inflation sped to its fastest pace since 1982. The Tokyo data is used as indicative of national level inflation, which appears likely to also rise in November. Japanese Government Bonds came under pressure on the data, the yield on 10-year JGBs rose to near the top of the Bank of Japan target band. The response of the yen, however, was to weaken. Not by much, the range has been from lows around 138.45 to a high just over 139.00. As I update USD/JPY has dropped back to more or less the middle of its range. Despite rising inflation the Bank of Japan have been adamant in insisting its transitory, driven by cost-push factors that will dissipate.

Elsewhere across major FX rates ranges have been subdued, interest has been sapped by the US Thanksgiving holiday Thursday that’ll, unofficially, stretch into Friday and thus a four-day weekend.

Speculation of an RRR cut from the People’s Bank of China intensified. New COVID cases in the country rose to a fresh record high.

usdyen wrap 25 November 2022