Trading Forex and CFDs is risky
Read HotForex Daily Market Analysis

Harvey impacts Inflation USDJPY remains volatile

Market Analysis

USDJPY, H4                    

The 0.4% August U.S. CPI headline rise with a 0.2% core price gain both beat estimates thanks to Harvey, with an expected 2.8% energy price rise and a 0.1% food price uptick, but with a core price lift from gains of 4.4% for lodging away from home and 5.1% for hotel costs. We saw a third consecutive 0.3% gain for owners’ equivalent rent, a 0.2% rise for medical care services, and a flat new vehicle price figure after six consecutive drops. The headline figures rounded down from solid gains of 0.402% for CPI and 0.248% for the core. We expect a 0.5% September headline CPI rise with a 0.2% core increase, with lifts from Harvey and Irma that should translate to a 14% September gasoline price rise. The headline y/y increase should rise to 2.2% from 1.9% in August and 1.7% in July, while the “core” y/y rise climbs to 1.8% from a fourth consecutive 1.7% reading in August. We expect a 0.4% headline PCE chain price rise with a 0.2% core price gain that match today’s CPI figures, which would leave the y/y chain price rise climbing to 1.6% from 1.4% in June and July. We expect a 0.3% August nominal consumption rise with a 0.1% “real” drop.

USDJPY dropped on report of North Korean antics, with the Nikkei newspaper citing a Japanese government source saying that Pyongyang is preparing to conduct another missile test. USDJPY was kicked lower from around 111.00, after popping higher following strong U.S. data leads. The pair has settled around 110.50-60. A North Korean state agency earlier threatened to “sink” Japan and reduce the U.S. to “ashes and darkness


Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

Stuart Cowell

Senior Market Analyst


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.