Yen Steady After Mixed Batch Of Economic Data
ActionForex | Nov 27, 2015 12:36AM ET
The Japanese yen remains steady in Asian session after a batch of mixed economic data. National CPI core stayed unchanged at -0.1% mom yoy in October. However, Tokyo CPI core improved more than expected to 0.0% yoy in November. Household spending dropped sharply by -2.4% yoy in October. Nonetheless, unemployment rate dropped to 3.1% in October, hitting the lowest level in 20 years. Opinions on whether BoJ would ease monetary policies further are divided. There are some analysts expecting further stimulus early 2016 as deflation remained and the economy relapsed into recession in July-September quarter. However, it's clear that many BoJ officials are reluctant to expand easing for the moment and would like to wait and see the impact of Fed's expect rate hike first.
Elsewhere, dollar remains firm against Euro and Swiss Franc but there is no follow through buying. All eyes are on the ECB meeting next Thursday. Following a dovish meeting on October 22 and comments from President Mario Draghi thereafter, the market is almost fully priced in that more accommodative measures would be announced in December. Note that next week's ECB meeting is just before Fed Chair Janet Yellen's testimony before the Congress. A hawkish October FOMC meeting has greatly intensified speculations of Fed's rate hike on December 16. More in Policy Divergence Takes Centre Stage .
Elsewhere, UK Gfk consumer sentiment dropped to 1 in November. UK Q3 GDP revision and index of services will be released in European session. Eurozone will also release confidence indicators. Canada will release IPPI and RMPI.
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