ForexLive Asia-Pacific FX news wrap: Small ranges only here in Asia | Forexlive

It
was a very subdued day across major FX markets here in Asia in the
wake of the Thanksgiving holiday in the US. Flows were barely
existent with many traders and investors happy to take an extended
long weekend break. Ranges were small only.

We
didn’t have any news of significance hitting although we did get
the latest update on inflation from Japan. The core consumer price
index (CPI excluding fresh food) rose from 2.8% y/y in September to
2.9% in October, its first acceleration in four months, but missing the
consensus estimate of 3.0%. At 2.9% this is the indicator’s 19th
consecutive month above the Bank of Japan’s 2% target.

Yes,
19 months. And
yet still the Bank tells us inflation is transitory and they want to
see evidence of demand-pull factors to make inflation sustainable and
stable – i.e. wage gains at the next round of wages talks in
Springtime.

The
narrower measure of inflation (the core-core index that excludes
fresh food and fuel costs and is the closest to the US ‘core’
measure of inflation) rose 4.0% in the year to October. Its been above
4.0% for seven straight months).

The
Bank of Japan next meet on December 18 and 19. As I said, the Bank is
waiting on wage talks in Spring and thus there are basically zero
expectations of any significant pivot from the Bank at this December
meeting.



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