USD/JPY Trading Sideways After US Inflation Report
The USD/JPY is trading at 112.26 level, having lost 0.01% on the day. The Japanese yen has posted five straight winning sessions and has gained 1.9% since Friday. Japanese 30-year bonds posted a yield of 0.90%, its highest since February 2017.
US consumer prices rose less than expected in September. The consumer price index (CPI) rose 0.1% last month, compared to expectations for a gain of 0.2%. On annual basis, inflation rose 2.3%, below forecasts for a reading of 2.4% and down from 2.7% in August.
Core CPI, a key gauge of underlying consumer price pressures that excludes food and energy costs, increased by 0.1% from a month earlier, below forecasts for a gain of 0.2%. The annual increase in the core CPI was 2.2%. Economists had forecast an increase of 2.3%. Still, US CPI data pointed to a steady increase in inflation, keeping pressure on the Federal Reserve to stick to its plan for gradual interest rate hikes.
This week, the IMF revised its global growth forecast downwards to 3.7% for 2018 and 2019, down from 3.9% in April amid growing trade tension. However, the IMF revised upwards its growth forecast for Japan to 1.1%, compared to 1.0% in April.