The yen weakened during the session here to open the week, inching towards its recent high circa 151.70. The only news to go on were the PPI (AKA the corporate good price index) data for October, which dropped under 1% for the first time since February 2021. The Bank of Japan view core consumer inflation (CPI) as likely to drop from current high (for Japan) levels and with less pressure coming from this lower ‘wholesale’ inflation rate it seems the Bank may be correct. With CPI likely unsustainable above 2%, its looks very much like BOJ monetary policy will remain easy for still some time to come.

EUR/JPY hit its highest since 2008.

Elsewhere across major FX rates moves were restrained. USD/CAD has traded a little higher absent any fresh news of note.

An RBA official today reiterated that the decline in Australian inflation was expected to be slower than previously forecast, saying that still-strong levels of demand have allowed businesses to pass on cost increases. AUD/USD did little during the session in response.

Of interest of China we had Fitch Ratings saying it plans to withdraw all the ratings on Country Garden Services Holdings Company Limited. Country Garden is a huge property developer engulfed in a debt crisis. As are so many others.

more to come

usdyen 13 November 2023 wrap chart 1