- US CPI data due Tuesday. Here are the ranges of estimates (& why they’re crucial to know).
- Bank of England Monetary Policy Committee member Catherine Mann to speak again on Tuesday
- Moody’s withdraws China property developer Vanke ‘Baa3’ rating
- Bank of Japan Governor Ueda – Japan’s economy recovering moderately, some weak data seen
- Japan’s Kanda (yen intervention official) to speak soon
- PBOC sets USD/ CNY mid-point today at 7.0963 (vs. estimate at 7.1885)
- Argentina’s central bank cuts its benchmark interest rate to 80%, from 100%
- ICYMI – MicroStrategy bought another 12,000 Bitcoin
- Japan Suzuki: Not at a stage where Japan can avoid the risk of falling back into deflation
- Australian February business confidence 0 (prior 1)
- Japan February wholesale prices +0.2% m/m (+0.1% expected) & +0.6% y/y (+0.5% expected)
- Bank of Japan Governor Ueda to speak from 0200 GMT, 2200 US Eastern time
- More on JP Morgan’s CEO Dimon urging Fed to wait past June before cutting rates
- Barclays forecasts lower bond prices and higher yields for US Treasuries
- RBA’s Hunter says inflation in Australia is the biggest drag on household consumption
- BBC: “Boeing whistleblower found dead in US”
- Australia weekly consumer confidence 82.2 (prior 81.0)
- JP Morgan CEO Dimon says he sees a little bit of a bubble in US equity market right now
- New Zealand electronic card retail sales data for February -1.8% m/m (prior +1.7%)
- JP Morgan says chill out, the Magnificent Seven stocks aren’t too expensive
- Forexlive Americas FX news wrap 11 Mar. Quiet start to the trading week ahead of CPI data.
- UBS forecast gold to $2250, but wait for pullbacks to buy
- US broader indices lower ahead of the US CPI data tomorrow
- EURGBP bounces near floor support today. Is a bottom in place?
- Trade ideas thread – Tuesday, 12 March, insightful charts, technical analysis, ideas
The
yen swung around during the session, initially strengthening and then
losing ground to be weaker than the Tokyo open.
USD/JPY
drifted lower in opening trade once Tokyo was active, down to lows
circa 146.63. There was little to drive it, although PPI data came in
a touch higher than was expected both m/m and y/y. Japan’s PPI is
also known as the corporate goods price index (CGPI), and, in brief,
it measures the price companies charge each other for their goods and
services. Its not consumer level inflation, but changes in its level
can be passed on to consumers, in time (its not a one-to-one, nor a simple
relationship).
We
then had remarks cross news services from Japan’s finance minister
Suzuki indicating he thought it was too early to say deflation was
beaten, and also not at a stage where Japan can avoid the risk of
falling back into deflation. These remarks lifted USD/JPY a little,
it traded back towards 147.00 and sat above 146.90.
Bank
of Japan Governor Ueda was next, answering questions in parliament.
As
usual, Ueda gave little away, emphasising again the Bank needs to see
wage talk results as part of its decision-making process at the
upcoming March 18 and 19 policy meeting. USD/JPY found more strength,
gaining quickly back up to highs just above 147.40. Its not far from
these highs as I update.
Elsewhere
across major FX there is not a lot to report. Ranges are small with
traders content to await the US inflation data (CPI for February) due
later today.
There
is more on the Japanese PPI, Suzuki, Ueda and the US CPI data ahead
in the points above.
Read More: ForexLive Asia-Pacific FX news wrap: Yen swings to continue ahead of BOJ next