• Japanese headline inflation likely to have stabilized at 0.7 pct in June, BOJ to stand pat

    Source: FxWire Pro - Commentary / 16 Jul 2018 17:40:10   America/New_York

    Japanese headline inflation data for June is set to be released this week. According to a DBS Bank research report, the consumer price inflation is expected to have stabilized at 0.7 percent year-on-year in the month, after slipping for three straight months in March-May.

    The downtrend in consumer price inflation figures appears to have come to a pause, owing to the increase in oil prices and the modest rises in domestic wage growth. This should give some relief for the central bank. Balancing between the easing risk of disinflation/deflation and the rising risk of export deceleration, the Bank of Japan is expected to keep policy unchanged during its next meeting on 31 July, added DBS Bank.

    At 21:00 GMT the FxWirePro's Hourly Strength Index of Japanese Yen was highly bearish at -108.348, while the FxWirePro's Hourly Strength Index of US Dollar was bearish at -83.2205. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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