Asian session review: tight ranges as “hawkish” comments from Fed not enough

The following data was published:

23:30 Japan Consumer Price Index in the region of Tokyo y / y in August -0.4% -0.5%

23:30 Japan Consumer Price Index with the exception of the price of fresh produce in the region of Tokyo y / y in August -0.4% -0.3% -0.4%

23:30 Japan National CPI y / y in July -0.4% -0.4%

23:30 Japan National Consumer Price Index with the exception of the price of fresh food, y / y in July -0.5% -0.4% -0.5%

06:00 Germany consumer confidence index from the GfK September 10 9.9 10.2

The US dollar continues to decline against major currencies in anticipation of Fed’s Yellen speech.

Traders consider a further tightening of monetary policy unlikely in the background of weak data on economic growth and productivity. However, the positive comments from the Federal Reserve’s officials in recent days have increased hopes for a rate hike.

Esther George said it is time to change the interest rate. Consumer spending and the labor market – the bright spots of the US economy, but business investment continues to disappoint. George agreed to the plan to gradually raise interest rates.

Fed funds futures indicates that investors see a 54% chance of a rate hike in December, according to the CME Group.

The yen is trading in a narrow range. Data published today show that consumer prices in Japan continued to fall in July, which means that the Bank of Japan may be forced to act to stimulate inflation.

Japan National Consumer Price Index in July, year on year, down by -0.4%, in line with economists’ forecast and the previous value. In August, the indicator for Tokyo area fell by -0.5%. The largest drop in July showed prices for electricity and gasoline.

The data are an assessment of price movements obtained by comparison of the retail prices of the relevant basket of goods and services. CPI – the most important barometer of changes in purchasing trends. Inflation reduces the purchasing power of the yen.

National CPI, except for the price of fresh food, decreased by 0.5%, after declining by 0.4% in June. The consumer price index except fresh products in the region of Tokyo, declined by -0.4% year on year, while economists forecasts -0.3%

The national consumer price index excluding food and energy for the period from January to July rose by 0.3% after rising 0.5% in the same period a year earlier

EUR / USD: during the Asian session, the pair was trading in the 1.1280-1.1310 range


GBP / USD: during the Asian session, the pair was trading in the $ 1.3180-1.3220 range


USD / JPY: during the Asian session, the pair was trading in the Y100.40-60 range


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