Yen Reinforcing, Positive Inflation Data

Due to the holiday season, no significant dynamic is seen at the market. The Dollar/Yen pair is calm. Yen is supported by positive inflation data and it’s likely to keep rising within the rest of the week. Core consumer prices kept growing for almost a year now, and now they have hit the 2-year maximum of +0.9% yoy. Household spending for November turned out to be positive as well (+1.7%), which in turn gave hope that price stability would be reached. Wages, however, are still the sticking point for the Bank of Japan. BoJ maintains low interest rates. The objective for the 10-year government bond yield remains at 0%. US Core Durable Goods Orders fell to the half a year minimum of 0.1%. Durable Goods Orders lifted 1.3%. Consumer confidence reduced to 95.9. Personal Spending rose to 0.6%. New Home Sales edged higher to the 10-year maximum of 733K.