Yen Calm After Inflation Data – Eyes on BoJ Decision
The Japanese Yen (JPY) did not move much after Japan’s latest inflation report. In August, core CPI (which leaves out fresh food) rose 2.7%, down from 3.1% in July. This shows that price growth is slowing.
The Bank of Japan (BoJ) kept interest rates in the 0.40%–0.50% range for the fifth time in a row. This steady stance gave traders a reason to think that a possible rate hike in October could happen.
Even so, the weaker inflation numbers and political issues in Japan are stopping the yen from gaining strongly. Many traders in the forex market are waiting for clear signals before making big moves.
On the other hand, the US Dollar (USD) is still strong after comments from Fed Chair Jerome Powell. This is keeping the USD/JPY pair at higher levels.
Now, the focus is on what BoJ Governor Kazuo Ueda will say in his press conference. His words could guide the market on the next steps for rates and inflation.
Impact:
The yen could rise if the BoJ hints at raising rates. But slow inflation and political risks might keep it from making big gains.
