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Prior +2.5% Core CPI +3.7% vs +3.7% y/y expected Prior +3.2% The December report was plagued by a steep drop in prices for airfares, as noted at the time here. A strong rebound there is one of the causes for the hotter report in January. Besides that, the introduction of VAT on private school fees
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Forex markets remained subdued today, with muted reactions to key economic data. Dollar held broadly higher as traders focused on the US-Russia peace talks, where both sides agreed to continue discussions on ending Russia’s invasion of Ukraine. However, meaningful progress is unlikely without direct involvement from Ukraine and European nations, keeping market uncertainty elevated. Canadian
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High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all your initial investment; do not
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Yen remains the standout performer, even though momentum had moderated slightly. Discussions surrounding BoJ’s next move continue to dominate, particularly in a low-activity session with both US and Canadian markets closed for holidays. After stronger than expected Japanese Q4 GDP report, market expectations for a July rate hike to 0.75% have strengthened to around 80%.
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Yen gained strength across the board after Japan’s Q4 GDP growth exceeded expectations, with both private consumption and capital investment rebounding. This development supports BoJ’s decision to hike in January and has fueled speculation that another rate increase could arrive sooner than expected. It’s now seen by some economists that the timing of the next
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UPCOMING EVENTS: Monday: Japan GDP. Tuesday: RBA Policy Decision, UK Employment report, German ZEW, Canada CPI, US NAHB Housing Market Index, New Zealand PPI. Wednesday: Australia Wage Price Index, RBNZ Policy Decision, UK CPI, US Housing Starts and Building Permits, FOMC Minutes. Thursday: Australia Employment report, PBoC LPR, Canada PPI, US Jobless Claims. Friday: Australia/Japan/Eurozone/UK/US
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High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all your initial investment; do not
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