ForexLive Asia-Pacific FX news wrap: China deflation persists, oil price small bounce |

The
Pentagon
confirmed that the US
had
launched
an airstrike on a facility in eastern Syria used by Iranian-backed
militias, in retaliation for what has been a growing number of
attacks on bases housing US troops in the region for the past several
weeks. The
strike was on a weapons
storage facility linked to Iran’s Revolutionary Guard. The
news contributed to the small retrace higher for oil prices after
Wednesday’s further slump.

From
China today were inflation data for October, still very subdued, and
indeed both CPI and PPI came in negative. China’s National Bureau of
Statistics (NBS) pointed at softening food prices as the big
contributor.

We
had comments hit the wires from Federal Reserve Bank of Philadelphia
President Patrick Harker. There was nothing to surprise traders in
his remarks with

  • ‘higher
    for longer’,
  • need
    to assess the impact of past rate hikes,
  • moves
    ahead will depend on the data,
  • and
    there is no sign of any near term rate cuts

all
featuring.

While
on central banks, an ex-BOJ official, former executive director in
charge of monetary policy during the pandemic (and also once head
economist at the Bank of Japan) Eiji Maeda said he thinks the Bank
could end its negative interest rate policy as soon as January “if
it judges that inflationary pressure is rising” (see bullets
above for more). USD/JPY barely responded.

Major
FX rates traded in small ranges only with little to prompt movement
crossing during the session.



This article was originally published by a www.forexlive.com . Read the Original article here. .