It was another subdued day in Asia with the excuse today being ‘awaiting the US CPI’. Fair enough, it’s a critical report. Oh, tomorrow we’ll be getting ‘waiting on the ECB’.

Nevertheless we did have some minor movement.

EUR/USD rose on Reuters reporting an apparent leak of a likely European Central Bank rate hike on Thursday (see bullets above). Reuters cited an unnamed source who said the reason for the hike was higher inflation forecasts.

USD/JPY chipped away at its Monday morning gap, rising to a high just over 147.40, so there’s still a way to go higher before that gap is filled. Market pricing has shifted significantly to an end to negative rates at the Bank of Japan in January 2024 from September 2024 previously. More in the bullets above on this.

The USD gained more widely, AUD, NZD, CAD, GBP all traded down a little during the session. The yuan broke the mould, the Chinese currency is stronger on the session. Piecemeal policy changes continue in China and the news on Country Garden (the troubled property developer) is also on the up, it received approval to extend another yuan bond.

News flow otherwise was light.

We got data from Japan, m/m PPI came in higher than expected while the y/y was inline and lower for an eighth consecutive month.

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EUR/USD rose on the 'leak':

eurusd leak ecb wrap chart 13 September 2023